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Macro-economic Management of the Indian Economy: Capital Flows, Interest Rates and Inflation

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  • Arvind Virmani

Abstract

The paper lays out a consistent frame work for monetary management in the context of excess capital inflows. There is an urgent need for developing competitive, open and well regulated markets for (a) long term debt (b) rupee futures and forwards, and (c) interest rate /credit risk products, so that economic agents can hedge their exposure in an efficient market with low transaction costs. [Working Paper No. 2/2007-DEA]

Suggested Citation

  • Arvind Virmani, 2008. "Macro-economic Management of the Indian Economy: Capital Flows, Interest Rates and Inflation," Working Papers id:1353, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1353
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    References listed on IDEAS

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    1. Ofair Razin & Susan M. Collins, 1997. "Real Exchange Rate Misalignments and Growth," International Finance 9707001, University Library of Munich, Germany.
    2. Ofair Razin & Susan M. Collins, 1997. "Real Exchange Rate Misalignments and Growth," NBER Working Papers 6174, National Bureau of Economic Research, Inc.
    3. Ricardo Faria, Joao & Leon-Ledesma, Miguel, 2003. "Testing the Balassa-Samuelson effect: Implications for growth and the PPP," Journal of Macroeconomics, Elsevier, vol. 25(2), pages 241-253, June.
    4. Arvind Virmani, 2011. "The Dynamics of Competition: Phasing of Domestic and External Liberalisation in India," Working Papers id:3556, eSocialSciences.
    5. Arvind Virmani, 2005. "Policy regimes, growth and poverty in India : Lessons of government failure and entrepreneurial success," Indian Council for Research on International Economic Relations, New Delhi Working Papers 170, Indian Council for Research on International Economic Relations, New Delhi, India.
    6. Vipul Bhatt & Arvind Virmani, 2005. "Global integration of India's Money Market : Interest rate parity in India," Indian Council for Research on International Economic Relations, New Delhi Working Papers 164, Indian Council for Research on International Economic Relations, New Delhi, India.
    7. Arvind Virmani, 2006. "India's Economic Growth History: Fluctuations, Trends, Break Points and Phases," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 41(1), pages 81-103, July.
    8. Ajay Shah & Ila Patnaik, 2007. "India's Experience with Capital Flows: The Elusive Quest for a Sustainable Current Account Deficit," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 609-644, National Bureau of Economic Research, Inc.
    9. Arvind Virmani & B.N.Goldar & C.Veeramani & Vipul Bhatt, 2004. "Impact of tariff reforms on Indian industry: Assessment based on a mutli-sector econometric model," Indian Council for Research on International Economic Relations, New Delhi Working Papers 135, Indian Council for Research on International Economic Relations, New Delhi, India.
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    Cited by:

    1. M. Govinda Rao & Sen, Tapas Kumar & Jena, Pratap R., 2008. "Issues before the thirteenth finance commission," Working Papers 08/55, National Institute of Public Finance and Policy.
    2. Masood, Tariq & Ahmad, Mohd. Izhar, 2009. "Macroeconomic Implications of Capital Inflows in India," MPRA Paper 19299, University Library of Munich, Germany, revised 06 Oct 2009.
    3. Gargi Sanati, 2010. "Integration of India’s Financial Markets on the Domestic and International Fronts: An Emperical Analysis of the Post-Liberalisation Period. June 2010," Working Papers id:3097, eSocialSciences.

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