Capital flood

ARVIND SUBRAMANIAN of the Peterson Institute argues against opening up the floodgates to the capital sloshing across the world in an environment of mercantilistic policies across the world with countries across the world doing their best to repel capital. In an op-ed in Business Standard, "Reserve Bank of India's Fateful, Fatal Action", he argues that improving governance and regulatory reform rather than access to foreign capital was the need and that the RBI may be trading away a bird in hand (the tradable sector) for the bird in the bush (infrastructure).