In this episode of Arth Niti, join Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, as he engages in a thought-provoking conversation with Philippe Bacchetta, Swiss Finance Institute Professor of Macroeconomics at the University of Lausanne. Together, they explore the complexities of exchange rate systems and the nuances of international capital flows. The discussion then shifts to a critical analysis of the 'original sin' in emerging markets and its far-reaching consequences. Concluding the episode, they delve into the challenges and strategies surrounding De-dollarisation and the optimization of central bank reserves.