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

Capital AccountSubscribe to Capital Account

International Reserve Holdings by Developing Countries

Rapid reserve depletion has been one of the defining features of currency crises and reserve levels ex ante have showed up as a significant variable in many studies examining the predictability of crises. This would appear to suggest that countries need to look beyond domestic reserve and debt management to buttress their international liquidity positions to effectively protect themselves from the vagaries of international capital markets.

Cautious Capital Account Liberalisation

The achievements on the external account have been quite remarkable, most notable among them being containment of speculative forces and curbing of arbitrage. The build-up of sizeable foreign currency assets and stability in the forex market have made it possible for the authorities to carry forward the policy of cautious capital account liberalisation.

Capital Account Liberalisation

This paper documents trends in capital flows into India in a comparative perspective, examines the impact of these flows on key macroeconomic variables and discusses the implications for economic policy.

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