Achievement

I feel honoured to bring to your notice that one of my papers has finally been published and is now available as a chapter of a book. The book titled “Finance-led Capitalism? Macroeconomic Effects of Changes in the Financial Sector” by Eckhard Hein, Torsten Niechoj, Peter Spahn, Achim Truger (eds.) has finally gone on sale (kindly refer the link http://www.metropolis-verlag.de/Finance-led-Capitalism%3F/705/book.do).

The chapter, titled “Crisis prevention and capital controls in India: perspectives from capital account in the current scenario“ is an extract from my Thesis during my Master’s studies in the University of Applied Sciences, Berlin, Germany which won me the DAAD Prize 2006. This paper was also invited to be presented at the 11th Workshop of Research Network Macroeconomic Policies, “Finance -led capitalism? Macroeconomic Effects of Changes in the Financial Sector” organised by Hans-Boeckler-Stiftung in Berlin on 26th & 27th October, 2007 whereby I got a chance to interact with world renowned Economists in the field of Macroeconomics. The version of the paper presented in the conference is also available online at the link: http://www.boeckler.de/pdf/v_2007_10_26_khurana.pdf

This paper analyses the capital controls in India and the potential risk of a financial crisis and/or a recession hitting the Indian economy. The paper also looks at the exchange rate regime followed by the RBI in India. Finally, in particular, it looks at two scenarios which may trigger a financial crisis and/or a recession. A look at the booming stock markets in India was undertaken to analyse the possibility of a stock market crash. Last, the paper analysed the banking sector and its reforms to study whether it is capable enough to deal with sudden outflows arising out of a stock market crash or would it succumb to its own weaknesses, further worsening the crisis by initiating a banking crisis and/or a currency crisis.

I am sure the paper would make an interesting read especially in the current scenario where the Indian Economy just might face a recession.