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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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