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

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Capital Account Management in India

India has been subject to capricious capital flows since its integration with the global capital markets in the early 1990s. In a bid to balance diverse objectives, India, like many other emerging markets, has resorted to active management of various types of capital flows. This paper finds that while the calibrated liberalisation approach resulted in altering the composition of capital flows towards more stable flows, and has helped India to negotiate the "Trilemma," the use of sporadic capital account management measures in the face of surge or stop of capital flows has not been very effective in achieving their objectives of reducing external vulnerability or mitigating macro-prudential risks.

Calcutta Diary

Climbing down from the high horse it was accustomed to ride, the IMF is now telling the poor countries that, in order to stimulate growth, they could lower lending rates; market forces may for the present be forgotten. Why, the Federal Reserve System in the US has, since beginning of the year, lowered its prime rate on as many as seven occasions. So, please do as the Americans do.

Bank Supervisory Arrangements

The purpose of this paper is to examine the choice of location of prudential supervision of banks. Should central banks assume this role or should there be a unified regulator covering all financial institutions? With the growing concern among central banks about the need to maintain financial stability, can such problems be effectively tackled if regulation/ supervision is vested with the central banks? The evidence.
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