A critical issue in this regard is a view on whether the capital flows are temporary or permanent in nature. The recent episode of large capital flows prompted a debate in India on the need for exchange rate adjustment.
[3] See Cima, S., Killeen, N. and Madouros, V. 2019. “Mapping Market-Based Finance in Ireland”, Central Bank of Ireland, Financial Stability Notes, Vol. 2019, No. 17.