Growth with Financial Stability (OIP): Central Banking in an Emerging Market

by Rakesh Mohan

Overview

It is widely believed that the Indian economy witnessed near stagnation in real GDP growth from Independence till the late 1970s. Challenging this notion, the collection of papers and speeches in this volume provides fresh perspectives on India's growth experience from Independence to the recent global financial crisis. This volume documents how the conduct of Indian monetary and financial policy has been unorthodox by the standards of extant international conventional wisdom, but appropriate to the macroeconomic and structural conditions prevailing in India.

With a focus on growth drivers and financial stability, the volume deals with a wide-range of issues: growth of manufacturing and service sectors, role of policies (monetary, fiscal, financial market and sector, external sector), urban infrastructure investment, public service delivery, role of central banks, and the interaction between international finance and monetary policy. Drawing upon the post-reform experience and the global crisis, the volume takes stock of current challenges and suggests strategies to sustain long-term double-digit growth rates.

Product Details

ISBN-13:	9780198070207
Publisher:	Oxford University Press
Publication date:	09/25/2011
Edition description:	New Edition
Pages:	520
Product dimensions:	6.40(w) x 9.40(h) x 1.60(d)

About the Author

Rakesh Mohan is Professor in the Practice of International Economics and Finance, Yale School of Management. He is also Senior Fellow, Jackson Institute of Global Affairs, Yale University; and is also the Chairman, National Transport Development Policy Committee, Government of India.

Table of Contents

List of Tables, Figures, and Annexes ix

Preface xvii

Introduction xxiii

I Indian Economic Growth: The Record

1 The Growth Record of the Indian Economy: A Story of Sustained Savings and Investment 3

2 Sustaining Growth with Stability: The Role of Fiscal and Monetary Policies 43

3 Innovation and Growth: Role of the Financial Sector 82

II Growth and The Financial Sector

4 Development of Banking and Financial Markets in India: Fostering Growth while Containing Risk 101

5 Development of the Indian Debt Market Partha Ray 153

6 Financial Inclusion in India: A Glass Half Empty or Three Quarters Full? 206

III Issuses In Monetary Policy

7 Communication in Central Banks: A Perspective 251

8 Managing the Impossible Trinity: Volatile Capital Flows and Indian Monetary Policy Muneesh Kapur 271

IV The Global Financial Crisis

9 Liberalization and Regulation of Capital Flows: Lessons for Emerging Market Economies Muneesh Kapur 347

10 The Global Financial Crisis: Causes, Impact, Policy Responses, and Lessons 309

11 Emerging Contours of Financial Regulation: Challenges and Dynamics 423

V The Way Ahead

12 Economic Reforms in India: Where Are We and Where Do We Go? 453

Index 488

Editorial Reviews

"Rakesh Mohan's Growth with Financial Stability offers a balanced analysis of the monetary and financial policies followed by the RBI and the government, particularly in the post-reform period and during the recent global financial crisis. It also gives a good exposition of RBI's way of thinking as the author was part of the establishment when these policies were formulated and implemented. This volume is essential reading for students, researchers and policy-makers, and all those interested in monetary and financial policies and economic growth." —ASCI Journal of Management

From the Publisher