The Chilean experience with management of capital inflows and temporary recourse to unique Chilean type of tax on cross border capital flow is often discussed in both academic and policy circles. The visit of Governor Corbo to India in January 2004 was the first by a Governor from Latin America to visit the Reserve Bank of India in the recent years.
The scholarly speech that he delivered on the recent developments and prospects of the Chilean Economy was very well received in the Reserve Bank. Today, in my presentation, there would be a brief review of the Indian economy, followed by assessment of short term and medium term prospects.