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A
recent government report on FII inflows
into the Indian stock market reflects
the growing chasm between the view points
of the Finance Ministry and the Central
Bank on the matter. While the report advocates
the cause of the FIIs, the RBI, concerned
about the macroeconomic implications of
excessive capital inflows and outflows,
has virtually disowned much of it. In
this critique, the author looks at the
various arguments.
February 14, 2006. |
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