Summaries by Somnath Mukherjee

India's FCNR-B inflows bolstered forex reserves and rupee stability, but the author cautions against a "Pyrrhic victory." The nation faces a "monetary quadrilemma" balancing capital flows, exchange rates, monetary policy, and asset inflation. Inflows generated vast liquidity, risking inflation and lower rates, worsening asset overvaluation and outflows. Structural remedies are crucial. India must attract long-term capital, potentially raise interest rates to curb asset inflation, and spur industrial growth. Coherent policy is essential to navigate these complexities and ensure long-term success.