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Capital Inflows, Financial Repression and Macroeconomic Policy in India since the Reforms

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  • Partha Sen

Abstract

Since the early 1990s the Indian economy has seen a considerable relaxation of controls, as a consequence of which it has witnessed unprecedented growth. This is especially remarkable in the external sector. In this paper I evaluate the progress made on the macroeconomic front and address the possibility of opening up the capital account of the balance of payments. I show that given the weakness in the financial sector and the government finances, it may be dangerous to speed up the process of opening up the capital account further. [CDE WP 157]

Suggested Citation

  • Partha Sen, 2007. "Capital Inflows, Financial Repression and Macroeconomic Policy in India since the Reforms," Working Papers id:1230, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1230
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