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

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Blame It on Greece

Rupee's Travails

There is a tendency in official circles to link the rupee’s current problems to the crisis in Greece and the eurozone. India will no doubt feel a contagion effect but the deeper problem is that the economy and the rupee are beginning to pay the price for the excessive dependence on capital infl ows, especially from foreign institutional investors and external commercial borrowings. It will not do to blame the Greek crisis for the rupee’s problems.



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