Wednesday, August 08, 2007
Rajwade on trade credit
A key insight of modern international economics is that once a country has a large current account, capital controls become relatively ineffective. When the currency regime leaves money on the table in terms of one-way-bets, it becomes harder and harder to prevent this from inducing unstable capital flows. A V Rajwade has an article in Business Standard about this phenomenon.
Labels:
capital controls,
credit market
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