The paper explores puzzles in Indian growth performance such as the prolonged period of below potential growth in the late nineties. Uneven behaviour of investment was a major explanation. Risk aversion and adverse expectations prevented investment from rising. Since sufficient domestic and...

The paper analyzes the potential rise of new reserve currencies in the context of the economic and political determinants of an international currency. Two models analyze the role of soft political power, switching costs to a new currency and transaction costs in the rise of a new currency....

We analyze prospects for the Chinese renminbi to become a major international currency, along with the US dollar, in a multiple reserve currency world. Analytical models on switching costs in networks and on currency choice under direct and indirect transaction costs are used to derive variables...