IndiaSphere

Quite often, one hears the idea that India should emulate Chinese-style exchange rate policy, on the grounds that this will help India move up from 7.5% trend GDP growth to Chinese-style 11% GDP growth. I wrote an article Copy with care in Financial Express yesterday, where I talk about the role of exchange rate policy in the Chinese growth miracle, about the costs of Chinese exchange rate policy and the long-term sustainability of Chinese exchange rate policy.On the difficulties of Chinese monetary policy, read: Barry Eichengreen and Martin Wolf. Read Original story