Thirdly, a hierarchy in capital flows is recognised and management of capital account is advocated on that basis. Fourthly, the pace and content of reform in financial and external sectors are calibrated after taking into account reforms in real, fiscal and public sector as a whole.
These approaches to reform have had a salutary impact on the preparedness of financial institutions, financial markets, public policy and above all, public opinion to participate gainfully in the reform process. Way forward, there is considerable merit in persisting with these approaches that have ensured macro-stability, while fine tuning them to the changing times and global challenges.