Sliding rupee, sloppy methods

Alert policy-makers learn from experience and adjust their policies when these don’t work. As John Maynard Keynes once famously stated, “When the facts change, I change my mind. What do you do, sir?” This is not what our policymakers are doing. Even while the existing exchange rate policy is clearly not delivering, they are continuing with more of the same — a hands-off approach and letting the markets determine the rupee’s value, alongside a steady reduction in capital controls.

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