01776cas a2200253 a 4500 AALejournalIMF001100 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859171 1018-5941 BD-DhAAL BD-DhAAL Callen, Tim. Assessing External Sustainability in India / Tim Callen, Paul Cashin. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the solvency and sustainability of India's external imbalances and analyzes the optimality of its capital flows. We use three approaches: an intertemporal model of the current account that allows for capital controls; a composite model of macroeconomic indicators that yields probabilities of future balance of payments crises; and scenarios that examine the path of the current account consistent with the stabilization of India's external liability-to-GDP ratio. The results indicate that India's intertemporal budget constraint is satisfied and that the path of its current account imbalances is sustainable, with some support for the optimality (given capital controls) of its external borrowing. Mode of access: Internet Cashin, Paul. IMF Working Papers; Working Paper ; No. 1999/181 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/181/001.1999.issue-181-en.xml IMF e-Library