Indian economy : essays on money and finance

From 1991 onwards, the Indian economy. has witnessed a series of momentous structural changes, which have thrown up several new challenges. Consequently, India's premier financial institution, the Reserve Bank of India, has had a crucial role to play in developing new policies and strategies in relation to the financial system, keeping in mind the unprecedented magnitude of the macro-economic reforms initiated by the Government of India. At the helm of the RBI was the author, Dr. C. Rangarajan, during whose tenure the Indian financial system underwent a sea change. He is, thus, in a unique position to present an insider's view of events as they unfolded.

This volume, which essentially focuses on select policy issues with regard to the Indian economy, comprises a collection of lectures delivered by the author at various national and international fora during 1992-97. The thematic grouping of the lectures (in four parts) and their sequential presentation help in tracing the route travelled by India with respect to economic reforms.

The first part deals with monetary policy issues, especially the core topics including the objectives of monetary policy, the trade off between growth and price stability, and the relationship between fiscal and monetary policies and the regulation of money supply.

The second part highlights the important aspects of banking sector reforms including its rationale and sequencing and also discusses the significance of non-bank financial companies and the role of rural credit. The third part throws light on external policy issues such as the balance of payments situation and the exchange rate management.