Tuesday, August 20, 2013

The many perils of borrowed prosperity

..........It is in this backdrop that the finance minister and the RBI have unfolded their external rebalancing strategy. The official policy mix has two components: (a) compressing import of gold, silver, oil and other ‘non-essential’ items by increasing customs duties (b) attracting more capital inflows by raising interest rates and liberalizing the norms for external borrowing. With these steps, Chidambaram expects............

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