Should we go for the Forex intervention seeing the appreciation of Rupee?

[Paramjeet_1988]

Subbarao recently said during an international conference that Forex intervention incurs huge cost so we should make sure that we are ready for the costs that are associated with forex intervention. He further added that sterlizing ( controlling the liquidity arising from the FDI) the liquidity arising from the FDI would result in interest rate rising up that would hurt the investment sentiments in India else in the other case it would put the inflationary pressure. So in this case he said that we have to look for orientation of the economic goal with the macroeconomic policy.

 

[vardhanvishnug]

Going forward, the biggest challenge for the emerging market economies will be to pursue their growth and development strategies ion this evolving world of a 'new normal' growth and less welcoming of globalisation