India and the Global Financial Crisis: Managing Money and Finance

This collection of essays provides insights into the making of public policies across a spectrum of areas between the years 2003 and 2008, a period of rapid growth of the Indian Economy as well as extraordinary challenges for the conduct of monetary policy. It was during this period that Dr Y.V. Reddy was the Governor of the Reserve Bank of India. He has earned universal acclaim for managing, as Governor of RBI, India's calibrated financial integration with the global economy. Ever since the financial crisis erupted in the USA in 2007 and spread to the rest of the world, there has been an interest in India's management of a financial sector that has facilitated growth and has yet maintained stability. What contributed to this situation? What was the RBI s perspective and what were its policies? This volume attempts to answer these questions. It also provides a comprehensive account of the events that led to the global financial crisis, the policy responses, the directions for future reforms and an Indian approach to meeting the challenges of contagion from the turmoil.



Contents

List of Abbreviations Acknowledgements Introduction I. Indian Economy: Review and Prospects 1. India and the Global Economy 2. Importance of Productivity in India 3. Reflections on India s Economic Development 4. India: Development and Reform Experience, and Prospects II. Financial-Sector Reforms 5. Reforming India s Financial Sector: Changing Dimensions and Emerging Issues 6. Global Financial Turbulence and the Financial Sector in India: A Practitioner s Perspective 7. Rural Credit: Status and Agenda III. Banking-Sector Reforms 8. Banking-Sector Reforms in India: An Overview 9. Micro-Finance: RBI s Approach 10. Rural Banking: Review and Prospects IV. Monetary Policy in a Globalising World 11. Monetary Policy: An Outline 12. Globalisation of Monetary Policy and the Indian Experience 13. Monetary and Regulatory Policies: How to Get the Balance with Markets Right V. Organisation and Communication Policies of the RBI 14. Central Bank Communications: Some Random Thoughts 15. What RBI Means to the Common Person 16. Organisation and Functioning of the RBI 17. The Virtues and Vices of Talking About Monetary Policy: Some Comments VI. Managing Capital Account Liberalisation 18. Foreign Exchange Reserves: New Realities and Options 19. Management of the Capital Account in India: Some Perspectives 20. Government-owned Investment Vehicles and Capital Flows: Indian Perspective VII. Global Financial Imbalances and Crisis 21. Implications of Global Financial Imbalances for Emerging Market Economies 22. Global Imbalances: An Indian Perspective 23. Globalisation, Money and Finance: Uncertainties and Dilemmas Epilogue: The Global Financial Crisis and India Select Bibliography