Author: Renu KohliPublisher: Oxford University PressYear: 2005Language: EnglishPages: 259ISBN/UPC (if available): 0195670574
This volume is an account of India's financial integration with the world economy which coincides with a period of intense fragility in the global financial environment. India is opening up its capital markets at a time when openness to capital flows is being seriously questioned. The volume analyses the complexities and loopholes in India's reform journey in the face of liberalization of capital movements. India's gradual pace, coordination with domestic financial sector reforms, and approach to the liberalization of its capital account distinguish it from countries such as Chile, Korea, and Mexico. The volume aims to answer several critical questions: What constitutes an appropriate strategy for managing capital inflows in India? What are the major stumbling blocks to complete account convertibility? Is the domestic financial sector ready to face the impact of full capital account liberalization? How do impending macroeconomic reforms like fiscal imbalances constrain further liberalization In answering these questions, the book provides a positive, strategic, and normative analysis of monetary and financial governance. It identifies dangers to further liberalization unless key constraints limiting monetary policy responses are removed.
TABLES FIGURES ABBREVIATIONS Global Trends India's Capital Account Liberalization: Evolution, Pace, and Sequencing Capital Account Liberalization and the Domestic Financial Sector Exchange Rate and Fiscal Policies The Impact of Capital Account Liberalization Capital Account Liberalization: The Road Ahead BIBLIOGRAPHY INDEX