India's expericene in navigating the trilemma: Do capital control help?

Arbeitspapier

Managing capital flows is the key policy challenge for emerging economies like India in the aftermath of the crisis. In contrast to other emerging markets who are levying capital controls, India's macro-monetary framework is distinguished by significant restrictions that help manage inflows. Against this context, the paper characterizes India's capital account management strategy through illustrating the 2006-07 episodes of capital inflows in the buildup to the global financial crisis. It shows how these restrictions allowed the authorities to straddle the open-economy trilemma and balance the exchange rate and price stability objectives. It offers relevant evidence on the effectiveness of India's capital controls in retaining monetary autonomy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 257

Classification and Topics

• Classification: Wirtschaft ; Central Banks and Their Policies ; Financial Aspects of Economic Integration ; International Financial Markets ; General Financial Markets: Government Policy and Regulation ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: Capital flows ; Capital account liberalization ; monetary independence ; India ; trilemma. ; Kapitalmobilität ; Kapitalbilanz ; Kapitalverkehrskontrolle ; Indien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kohli, R.
• Event: Veröffentlichung
• (who): Indian Council for Research on International Economic Relations (ICRIER)
• (where): New Delhi
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/176275
• Last update: 10.03.2025, 11:42 AM CET