Stanley Fischer: The Israeli economy, the government’s budget policy and the problem of poverty Address by Professor Stanley Fischer, Governor of the Bank of Israel, to the Israel Democracy Institute Conference on Economic Policy (Caesarea Conference 2006), Jerusalem, 22 June 2006.
In this background, based on the Indian experience, I will present some issues relating to managing capital account. First, capital account liberalisation is a process and it has to be managed keeping in view elasticities in the economy, and vulnerabilities or potential for shocks. These include fiscal, financial, external, and even real sector - say, oil prices and monsoon conditions for India.