Capital Flows and Their Macroeconomic Effects in India

This paper documents trends in movement and composition of capital flows into India in a comparative perspective, examines the impact of these flows upon key macroeconomic variables in the economy, and dwells on implications for economic policy. We find that an inflow of foreign capital results in a real appreciation and has a significant impact on domestic money supply. During a capital surge, these effects have been countered through intervention and sterilization. The paper concludes with a discussion on the costs of these policies in the event of a heavy inflow of foreign capital into India.
Publication date: December 2001
ISBN: 9781451859768
$15.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Money and Monetary Policy , Money and Monetary Policy , real exchange rate , sterilization , capital controls , capital inflows , exchange rate , foreign capital , Monetary Policy , Central Banking , and the Supply of Money and Credit: General , Macroeconomic Policy , Macroeconomic Aspects of Public Finance , and General Outlook: G

Summary