ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Timing and Sequencing of Financial Sector Reforms-Evidence and Rationale

Evidence and Rationale Deena Khatkhate The success of financial liberalisation depends not so much on its intrinsic worth. which still remains unchallenged, as on how it is implemented. There is a certain order in which the various elements of financial reforms have to be introduced, In addition, a careful assessment has to be made of the state and structure of the financial system, the financial position of the borrowers, the fiscal stance of the government, the positing of the economy in the business cycle, macro-economic stability and the nature and effectiveness of the regulatory framework. These building blocks cannot be put in place all at once but in an appropriate sequential order in a mosaic of financial reform, In other words, the sequencing and timing of financial reform are critical for its success or failure.

East Asian Financial Crisis and the IMF-Chasing Shadows

The east Asian crisis has thrown up several questions. Was it a crisis which was deeply embedded in the structural policies and the political economy of these countries? Was the economic appraisal of these countries validated by the information which the IMF had gathered? Could it be that the IMF prescriptions exacerbated the malady, and thereby needlessly raised the costs of adjustment? Was it unambiguous that the Fund's advice was dispassionate and was not biased by the hidden agenda of the foreign economic policy of the US in particular and the OECD in general?

Impact of Volatility of Exchange Rates of Major Currencies on Foreign Exchange Management

Currencies on Foreign Exchange Management Deena Khatkhate Major currencies such as the dollar, yen and deutschmark, the dollar in particular, have fluctuated often and sharply in recent years. Their fluctuation has a significant impact on the developing countries' economies and their foreign exchange management in particular, which is the subject of this paper. Foreign exchange management involves foreign exchange reserves held by countries and their exchange rate policies. The two are interrelated, but are discussed separately here.

Financial Liberalisation-A Revisionist View

Financial Liberalisation A Revisionist View Deena Khatkhate Financial reform is rightly categorised not as an event but a process, constantly evolving. Two basic considerations have to be kept in mind in view in designing financial liberalisation policy strategy. For one, while financial reform is aimed at eliminating distortions in the financial markets induced by government intervention, it does not necessarily create perfect credit markets which were not perfect even before government stepped in. Financial reform has therefore to be built on the initial conditions, which make for a different profile of the reform with emphasis on its positive aspects of filling the gaps in human and information capital. Financial reform should be interpreted only as withdrawal of government intervention for economic reasons; but it is essential for prevention of breach of prudential rules for protection of investors' interests. Thus, greater the degree of financial liberalisation greater is the need for strengthening regulatory framework.

Net Inter-Bank Liabilities Needless Sound and Fury

The latest credit policy announcement should be seen as an important step, but the first of many steps to be taken to promote and strengthen indirect monetary policy instruments in a reforming monetary system.

Always a Borrower Be

Always a Borrower Be Deena Khatkhate The World Bank's Lending in South Asia by S Guhan; Brookings Occasional Papers, The Brookings Institution, Washington, DC, 1995; pp v+81.

A Primer on Fiscal Sanity

A Primer on Fiscal Sanity Deena Khatkhate Public Expenditure Management by A Premchand; International Monetary Fund, Washington, DC, 1993; pp 282.

In No-Mans-Land

In No-Man's-Land Deena Khatkhate The timidity of both Bush and Clinton in dealing with the real issues facing the economy is a manifestation of the deep malaise of the American political system and its democratic pretensions.

Family in Distress

Family in Distress Deena Khatkhate If Bush, Quayle and the Republicans are so concerned about family values and the survival of the American family, they should turn the light on some of their own attitudes and philosophies.

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