Capital account Since the initiation of gradual liberalisation of the capital account in 1991, capital flows have been in excess of current account deficit (CAD) except, in 1992-93 and 1995-96, adding to the reserves.
It can be said that the inflation expectations of both firms and consumers have been rising from a somewhat longer-term perspective – as suggested by the recent price-setting behavior of firms and the subsequent purchasing behavior of consumers, or by rises in base salaries for two consecutive years.