Way forward Greater internationalization of the rupee India has been pursuing calibrated approach towards capital account liberalization and a more liberalized capital account would require a deep and liquid forex market with wide variety of instruments, especially hedging instruments, to reduce volatility resulting from large capital flows.
We know that there have been, and will be again, periods of recession and recovery, though our ability to forecast the timing of those episodes is limited. We know from experience some things about the nature of inflation, including its characteristic persistence, and the things that can push it up or down.