To sum up, the public policy in India recognises that (a)  appropriate management of capital account is critical for both growth and stability;  (b)  the cautious approach to capital account has given us leeway;  (c)  there are preferences in regard to different types of capital flows;  (d)  some fiscal costs are consciously incurred as necessary on account of sterilisation;  (e)  monetary and exchange rate management are very complex in the context of wellknown trilemma, and in the current complex global environment, Indian cannot be immune to global development but we should maintain domestic drivers to growth.
In summary, the Federal Reserve’s wide range of expertise makes it uniquely suited to supervise large, complex financial institutions and to help identify risks to the financial system  6  For additional information, see Board of Governors of the Federal Reserve System (2009), “Federal Reserve Issues Proposed Guidance on Incentive Compensation,” press release, October 22.