Capital flows reversed in India post-QE2: RBI paper

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The flow of foreign capital into India actually fell, rather than increased, after the US Federal Reserve's announcement to conduct a second round of quantitative easing, according to a Reserve Bank of India paper published on Wednesday.

Anand Shankar, the paper's author, analyses the effect of quantitative easing two in the US on foreign institutional investment inflows into the Indian stock market and whether the capital flows increased after the Fed's announcement on November 3, 2010. The

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