Monday, September 10, 2012

Law of Capital Flows

RBI Governor Duvvuri Subbarao seems to be developing a penchant for one-liners. In a presentation at Cornell University, New York, earlier last week, the RBI chief had this to offer as his contribution to macroeconomics: “Subbarao’s Law of Capital Flows: You never get capital flows in the exact quantity and/or at the precise time you want them.” Considering the widening deficit that India is currently facing, Subbarao was likely talking from personal experience.

FE

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