The rupee defence policy has been counter-productive

Starting July 15, the ministry of finance and the RBI initiated a set of policies to defend the rupee. These policies have consisted of all the disregarded currency defences that countries have mounted over the last 20 years or so. Short-term interest rates were raised by over 300 basis points, import tariffs were increased, and capital controls initiated. Is there any bad policy left? No.

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