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Rajeev Malik: The destructive Delhi-Mumbai divide

Last year's hike in the ECB ceiling undermined the RBI's monetary agenda and unnecessarily jeopardised monetary management.  All emerging Asian economies are experiencing sizeable capital inflows, fuelled by a combination of flush global liquidity, increased risk appetite, attractive economic prospects, tempting local currency returns on equities, bonds and real estate, and expectations of currency appreciation. These capital inflows are adding to the dollar glut generated by the sizeable surpluses on the current account of the balance of payments (India is an exception, as it is ...