A return to the bad old days of a closed economy

In terms of their impact on people and on the economy in the immediate future, it is unlikely the capital controls and foreign-exchange restrictions announced earlier this week will have much of an impact. After all, for most Indians, the fact that they can convert only US$75,000 worth of rupees into foreign currency each year and send it abroad — and that this is much lower than the US$200,000 limit that existed previously — means very little.

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