Right facts, wrong conclusion

.....The policy of intervention and market controls was, in general, seen to be a success. But one must keep in mind the fact that the policy was a ‘success’ when RBI was not leaning against the wind. Should the policy of pegging the exchange rate involve RBI trying to influence markets in a direction opposite to that of the markets, the impact of a small intervention would be inadequate. To have a significant impact on a large, liquid market in order to defend a currency may involve much larger intervention........

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