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

V B AngadiSubscribe to V B Angadi

Price Stability, BoP Eqiulibrium and Economic Growth

and Economic Growth V B Angadi Monetary and Financial Policies in Developing Countries: Growth and Stabilisation by Akhtar Hussain and Anis Choudhary; Routledge Studies in Development Economics, London, 1996; pp 230, $ 40, THE book under review addresses the monetary and financial policies issues which have generated one of the most passionate debate in macro-economics. The relevance of the issues raised in the book is beyond doubt in the present context of the most of the developing economies which are experiencing transition. The discussion on the policy issues contained in the book is quite stimulating and thought- provoking. The important questions which have been examined at length in the book include: (1) Should monetary policy aim at minimising cyclical fluctuations, i e, minimising deviation of actual output from the potential one? In other words, should it be used for maintaining stability of price level and other monetary variables like exchange rate and interest rate rather than promoting growth of output? (2) What role do money and financial policies play in promoting long run growth of an economy with reasonable price stability? Are growth and stability objectives conflicting or complementary to each other? (3) Is it possible to attain sustained growth rate of output without monetary stability through repressed financial sector and forced saving via inflation? (4) What are the distinct features of money supply process and money demand behaviour in the developing economies? (5) Is it the demand shock or supply shock, that is the prominent cause of price instability in the developing economies? (6) Are price stability, external balance and growth interrelated? (7) What are the prerequisites of success of financial sector reforms? (8) What are institutional arrangements apart from the appropriate package of policies necessary for ensuring macro-economic stability?

Financial Innovations and Development

THE main issue addressed in the book under review relates to linkages between innovations, economic and financial developments. The financial systems in the advanced countries have witnessed several financial innovations. These financial innovations have been greatly responsible for widening and deepening of the markets, sophistication of the instruments and soundness of the institutions. They have also contributed partly to the process of globalisation and integration of financial markets. However, the question of a close and direct relationship between financial innovations and development, as a quick survey of the academic literature suggests, finds little space in the literature.

Policy Constraints and Banks Profitability

 Policy Constraints and Banks' Profitability V B Angadi A NUMBER of studies on bank's profitability published particularly during the last three years have contained more or less a common hypothesis. This is that the deterioration in profitability of Indian scheduled commercial banks in recent years has been chiefly caused by the policy constraints. In support of this hypothesis, a considerable amount of statistical evidence has been generated from data relating to the post- nationalisation period for the 14 major Indian commercial banks. The broad conclusions derived from these empirical studies may be summarised as follows:

Productivity and Profitability of Banks in India

in India V B Angadi V John Devaraj Banking constitutes an important link in several socio-economic activities. Therefore, the banking industry must be on a sound footing. While in India, there is stress on the social responsibility of banks, the significance of liquidity and profitability is not to be neglected.

Banks Advances to Priority Sectors-An Enquiry into the Causes of Concentration

An Enquiry into the Causes of Concentration V B Angadi While the unequal distribution of priority sector advances among as well as within the sectors is recognised, their concentration in a few states has attracted little attention.
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