rupee has sharply depreciated in the recent weeks
giving reason for concern. The external events of
rise in oil prices and rate of interest in advanced
economies has led to a surge in the current account
deficit and capital outflows respectively. The success
of 'the liberalization reforms' lies in the huge capital
inflows and thus, has enhanced the periodic bouts
of the rupee, hinting to symptoms of a bubble economy.
This article was originally published in the Frontline
Print edition: June 22, 2018.