If only this world was numbers!!!!!

wow......i just finished off a huge discussion with my roommate on capital account convertibility in india..i never imagined i could even understand those things........not that i am a whiz now.....but i can understand wht it means....and it really is confusing.....BTW....did u guys knw we don't hv full capital a/c convertibility in our country.....because we don't want to call the east asian crisis as south asian crisis......that was a bad one..sorry....well in most lay man terms....C A surplus is inflows - outflows.....inflows are capital investments like FDI, FII made by foreigners in our country and outflows u r smart enough to understand...well.....when these people come in with their large dollar boxes in our country...wht happens is there an excess of dollars in country...leading to the appreciation of our currency...leading to less exports and more imports.....leading to current account deficit...this is to balance the 'balance of payments'......now...if we allow full cap. a/c convertibility...one fine day these foreigners want to go back.....bcoz they feel homesick......and they come to the market and say.....hey take yur indian money....and give me back my dollars....then wht will happen......suddenly these guys will take all the dollars back.....and the system will be full of indian money.......wht will happen.....our currency will depriciate heavily......plus due to excess liquidity in the system...it will fuel the demand for goods........which will not be met by the supply...leading to demand pull inflation.......hence.....we conclude that we don't need full capital account convertibility.......if u hv any doubts...go and clear yurself.....bcoz i am already mad now.......thank god i did engineering.....its a lot more fun.........gnite...