Do Preemptive Capital Controls Belong In India’s Policy Toolkit?

Since the start of the Covid-19 pandemic, there has been an ebb and flow of foreign capital into emerging markets, including India, complicating the lives of policymakers. In just one month in March 2020, the reduction in net capital flows to emerging markets was equal to what occurred in six months during the famous 2013 ‘taper tantrum’ episode. Since March, foreign capital has flooded back in

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