Exports and imports averaged 53 per cent of GDP in the period 2000-2009 compared to almost 70 per cent in the euro area as a whole. In 2008, the current account deficit had reached almost 15 per cent of GDP. This unsustainable growth model has been changing through the crisis.
That will give you the broad context for appreciating the specific issues that I will raise later. RBI’s mandate 2. RBI has a mandate that is wider than is typical of central banks.