This Working Paper examines India's growth and employment generation performance over the last ten years in the context of key indicators such as fiscal and current account balances and inflation and suggests priorities for macroeconomic reforms. An improvement in the central Government's...

NOTE: This is a description of the paper and is not the actual abstract. In the absence of forward rates, testing for the impact of capital account liberalization measures using tests of covered interest parity is not feasible. This paper argues that additional information can be gained by...

A key issue in monetary policymaking is the time inconsistency problem confronting central banks. The impact of openness on inflation enables testing this rule versus discretion debate. This study examines the effect of openness and exchange rate regimes on inflation for 137 countries from 1999...

We develop a model of a small open economy with credit market frictions of the Holmstrom-Tirole type to analyze the consequences of capital account liberalization. We show that financial opening facilitates the inflows of cheap foreign funds and improves production efficiency. Reforms increasing...