Statement by Dr. Raghuram Rajan on taking office on September 4, 2013. [RBI Press release].

This study analyses the behaviour of monetary and fiscal policies interaction in India using quarterly data for 2000Q2 to 2010Q1. It finds that, even after the elimination of automatic monetisation of fiscal deficit in 1997 and prohibiting RBI from buying government securities in the primary...

China’s expected growth slowdown - from 10.3 per cent yoy in 2010 to 8.9 per cent this year and 8.3 per cent in 2012 - will impact the global economy. An in-depth look at how important China really is for the rest of the world. Also, potential speed bumpers ahead that might lead to...

Why do many households remain exposed to large exogenous sources of non-systematic income risk? Why don’t financial markets develop to pool these risks? This paper uses a series of randomized field experiments to test the importance of price and non-price factors in the adoption of an...

The Growth outlook has weakened as a result of adverse global and domestic factors that have been mentioned above. Business and consumer confidence has been impacted. Professional forecasters now see a weaker growth in the economy. However, inflation and expectations of inflation remain high and...

One of the methods of measuring the effectiveness of monetary policies is via inspection of monetary neutrality in the economy. It is a concept from classical economics and it suggests that changes in nominal variables do not have any impact on real variables. This paper studies the presence or...

A reduced form model where banks can pursue other goals than profit maximization is presented. This allows us to test for behavioral changes of banks over time. This model provides a framework to evaluate whether moral hazard issues may plague banks receiving state aid, which concerns greatly...

This paper makes an attempt to identify major factors, like currency forfeiting, loan default, capital shortfall, capital flight, etc which undermine consumer confidence in the financial services sector of Bangladesh. The paper also provides a review of different legislative and regulatory...

The turmoil that has characterised the global financial markets since the 1990s, and particularly the crisis in East Asia, has generated a great deal of support for proposals to add some frictions to the wheels of international finance, as part of overall reforms to the global financial...

The paper seeks to analyse and discuss the impact of financial reform and related institutional change on the process of financial intermediation. In effect reforms stood the earlier quantity driven model on its head. The attempt was to de-segment markets and remove asset and liability...