The paucity of ideas in India's economic policymaking showed up last week when some controls on foreign exchange outflows were brought back 71 years after the British Raj first introduced them because of World War II. The reintroduction has been disastrous with the rupee breaching the Rs 64 mark, partly on account of negative signals the controls sent the currency market. Controls will not insulate the rupee from reacting to what is primarily a structural weakness in the economy.
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