The second option is to do the opposite and increase interest - TopicsExpress

The second option is to do the opposite and increase interest rates to attract more foreign money in, following the path of Indonesia and Brazil. But this would further hammer Indian industry, which is already in poor shape, and probably increase bad debts at banks too. If the economy slowed further as a result, equity investors might begin to worry about corporate earnings declining and pull out their roughly $200 billion of investments in listed shares. Inducing a credit crunch in India might make things even worse. economist/blogs/banyan/2013/08/indias-economy?fsrc=scn/tw_ec/a_five_star_problem

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