ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By A V Rajwade

External Sector, Growth and the Exchange Rate

India has to acknowledge that it needs to manage the exchange rate rather than claim it should be market-determined. The rupee remains overvalued. To avoid a balance-of-payments crisis caused by the large current account deficit what is needed is depreciation of the rupee to somewhere around Rs 70+ level and the adoption of tight, defl ationary monetary and fiscal policies which would be extremely bitter.

Risks and Rewards of Capital Account Convertibility

This article discusses whether capital account convertibility can or should be an objective or a means towards achieving more fundamental macroeconomic goals. It presents an overview of the risks and rewards of convertibility and debates the issue of freely floating versus managed exchange rates and their implications for a developing economy.