Thanks to a higher oil price and capital-account controls, the central bank's reserves are moderately healthy.
Mr Walker estimates domestic saving from money-supply and capital-account data (which, again, should be more reliable than national-account numbers).
New restrictions on private-sector capital-account transactions mean that they are unable, for the moment, to pay their foreign creditors.
These trial reforms, while still relatively modest, are significant in large part because they show a way forward for capital-account liberalization.
The continual process of portfolio shifting inevitably leads to greater international capital flows and larger current-account deficits or surpluses.
India also needs to keep rates high enough to attract foreign capital and offset the current-account deficit, in order to keep the rupee from weakening and making inflation worse.
They have freed their exchange rates, avoided a dependence on short-term capital flows and steered clear of running up massive current-account deficits.
Capital depreciation can account for 50-80% of manufacturing cost in this kind of plant.
The government recently has simplified rules governing foreign investments in local bonds to attract capital flows and narrow its current-account deficit.
With a 1.35% annual yield, Sallie Mae is looking to pick the pockets of established online-account players like Capital One and Ally Bank (the new business name of GMAC), which respectively offer yields as high as 1.45% and 1.39%.
When do you pull the trigger on the mutual fund or separately-managed account in which you have placed your hard-earned capital?
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India's high inflation and chunky current-account deficit, financed by capital flows, mark it out from most of Asia.
These could also help attract foreign capital and narrow the country's current-account gap.
Mark-to-market accounting rules, which the government imposed in 2007, forced banks and life insurance companies to write down the value of their regulatory capital as if it were a day-trading account.
Lower growth than that would make the public debt harder to bear and scare off the foreign capital that India needs to fund its current-account deficit and pay for its imported energy.
Meanwhile, China is moving up the value chain into high-tech capital goods and is poised to account for about a third of global manufacturing of advanced machinery and equipment within a decade, from about 8% today, Mr. Zhu said.
In the meantime, you can lower your tax exposure by using a tax-deferred account to hold dividend-paying stocks, avoiding unnecessary trades and offseting realized capital gains with realized losses.
In a taxable account, net long-term capital gains are taxed at a rate lower than the ordinary income-tax rate for withdrawals from tax-deferred retirement plans.
The current-account deficit, now around 5% of GDP, is a key factor: if capital flows into America slowed even more sharply, or dried up, the adjustment involved in reducing the current-account deficit could be painful both for America and the rest of the world.
Part of the reason is that capital inflows have gone mainly to finance its persistent current-account deficit.
America, in turn, has been overly reliant on foreign capital inflows, so as to finance its record current-account deficit.
Meanwhile, huge current-account surpluses cannot be expected to offset capital outflows for ever.
Unfortunately, as Messrs Knight and Scacciavillani point out, neither of these two frameworks explains sudden, dramatic shifts in capital flows, such as those that have turned current-account deficits in a number of Asian countries into surpluses.
Some Old Economy stocks are still earning less than 5% on their shareholders' invested capital--less than an investor can get from a bank account.
India's growth model has been to run a small current-account deficit, financed with high-quality capital inflows, such as foreign direct investment and equity purchases.
India is financing its current-account deficit with volatile foreign fund inflows into the capital markets rather than foreign direct investment, which is a matter of concern, Mr. Subbarao said at an event in Mumbai.
Germany has a huge current-account surplus and so is not dependent on flighty foreign capital to keep its companies primed.
And Japan is different from America and Britain: it runs current-account surpluses and thus has not been dependent on foreign capital.
The shock to exports is contributing to a rise in current-account deficits that is increasing reliance on inflows of foreign capital.
But now they need new income streams following the decline in share sales, which together with bond sales and loan-advisory business account for the revenue banks make from the capital markets.
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