Bank of Canada paper on capital control liberalisation in India

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A Bank of Canada paper, published on Thursday, shows capital controls in India have evolved since the financial crisis by restricting capital inflows rather than outflows.

Michael Hutchison, Gurnain Kaur Pasricha and Nirvikar Singh, the paper’s authors, use data on non-deliverable forward markets in India to examine the effectiveness of international capital controls in India. The aim is to test whether the discretionary application of capital controls, against a background of gradual

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