3  See Paul Calem, Francisco Covas, and Jason Wu (2011), “The Impact of a Liquidity Shock on Bank Lending: The Case of the 2007 Collapse of the Private-Label RMBS Market (PDF),” (Washington: Board of Governors of the Federal Reserve System, August 15). Publication is also forthcoming in the Journal of Money, Credit and Banking.
As far as the Indian foreign exchange market is concerned, during the last five years the sources of supply and demand have changed significantly with large transactions emanating from capital account unlike in the past when current account transactions dominated the foreign exchange market.