A strategic element/flavour would add value to the deliberations and aid in delineating the future trajectory of regulations. Moving towards this vision, I suggest a futuristic question on this occasion to the market participants- an intellectual debate. What are the attributes of a reserve currency? Is fuller capital account convertibility of the currency a prerequisite? Where does INR stand in this regard?
This is a further reason why we need economic union: markets would be less likely to react negatively to temporarily higher deficits if they were more confident in future growth prospects. By committing governments to structural reforms, economic union provides the credibility that countries can indeed grow out of debt.