Exchange Rate Regimes — Mains Questions

Evaluate India's managed float exchange rate regime since 1993. Discuss its advantages, challenges, and its role in achieving macroeconomic stability amidst global uncertainties.

Compare and contrast fixed and floating exchange rate systems, highlighting their implications for monetary policy independence, trade balance, and vulnerability to financial crises. Which system, in your opinion, offers greater stability for a developing economy like India?

Discuss the 'Impossible Trinity' in the context of India's exchange rate management. How has the RBI navigated the trade-offs inherent in this trilemma, particularly in the era of increasing capital account convertibility?