Between mid-2005 and mid-2009, China's real trade-weighted exchange rate appreciated by about 5.5% a year.

ECONOMIST: Global rebalancing

The trade-weighted exchange rate index for the euro dropped from 114 in December 2008 to 96 in August 2012, a fall of 16%.

FORBES: Europe Will Recover As The Euro Falls

For example, the Goldman Sachs monetary-conditions index (based on a weighted average of short-and long-term interest rates and the trade-weighted exchange rate) suggests that America's monetary policy is currently at its tightest since 1989, largely reflecting the strong dollar.

ECONOMIST: The stockmarket economy

Mr Bhalla also takes issue with a suggestion that the Reserve Bank adopt an exchange-rate target a band of plus or minus 5% around a currency-weighted rate.

ECONOMIST: India's rupee