"Since the liberalisation of the Indian economy in 1991 the country has experienced sustained current account deficits. These deficits were serviced by a massive influx of capital inflows, made possible by the gradual removal of or reduction in restrictions on foreign investments since 1991....

"Since the 1990s, several emerging market economies (EMEs) have, to varying degrees, embraced the process of 'financial globalisation', broadly defined as a set of policies that involve allowing for greater openness to cross-border capital flows as well as greater market access to foreign...