RBI’s counterproductive stop-go policies

The Indian central bank’s ill-fated attempt to stabilise the rupee will come at the expense of macroeconomic stability.

RBI’s counterproductive stop-go policies

There is a pattern developing among some emerging-market central banks fear of floating.

Central banks in Turkey, Poland and Brazil have all used monetary operations recently, seemingly to prop up their currencies. And, on Monday, the Reserve Bank of India RBI became the latest central bank to join the FX intervention bandwagon after the rupee hit record lows against the dollar.

“The market perception of likely tapering of US quantitative easing has...

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