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Subir Gokarn: The rupee's smooth take-off

An average rate of appreciation of 2 per cent per year is similar to the 3 per cent that the Chinese have deemed to be non-disruptive.  Now that the quarterly monetary and credit policy announcement is out of the way, the macroeconomic policy focus must surely return to the critical issue of the exchange rate. The debate on what to do about it has been vigorous, on these pages and elsewhere, but, so far, it has not translated into a concrete statement about the direction which the policy is likely to take. Stopgap efforts to reduce capital inflows, like the restrictions on external ...