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Monetary Economics in Developing Countries - Subrata Ghatak

Monetary Economics in Developing Countries

Paperback

Published: 1st August 2007
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This book highlights the basic principles of monetary economics and their application to developing countries. Fully illustrated, the new edition includes four entirely new chapters, with material on financial crises, the debates surrounding inflation targeting, and an examination of the role and future of financial institutions.

List of tablesp. xi
List of figuresp. xii
Prefacep. xiv
Acknowledgmentsp. xv
Introductionp. 1
What the book is aboutp. 1
An overview of the bookp. 2
Developing countries' idiosyncrasiesp. 4
Some stylized factsp. 5
Finance, growth and developmentp. 7
Introductionp. 7
Financial intermediariesp. 8
Law and financep. 12
Banking regulation and supervisionp. 13
Empirical evidence on finance and growthp. 15
Rural financial institutionsp. 20
Unorganized money markets in developing countries, and some consequencesp. 20
Determination of rural interest rates in developing countriesp. 24
An evaluationp. 31
Policies for an integrated development of rural financial markets in developing countriesp. 31
Rural money markets and implications for monetary policyp. 35
Stiglitz and Weiss's (1981) credit rationing modelp. 39
Overcoming adverse selection problemsp. 40
Theories of money and economic growthp. 43
A simple Harrod-Domar growth modelp. 43
The neo-classical growth modelp. 45
Money in a neo-classical growth model: the Tobin modelp. 47
Problems in the application of neo-classical monetary growth theory to developing countriesp. 49
Economic growth and the role of financial intermediariesp. 52
The Gurley-Shaw modelp. 53
Economic development and 'financial accumulation'p. 54
Financial repression and economic growth: the McKinnon and Shaw modelp. 56
A neo-structuralist view of monetary growth and development: van Wijnbergen-Taylor modelp. 60
The Keynesian and monetarist views on the importance of moneyp. 63
The classical viewp. 63
The Keynesian theoryp. 68
Money and the interest ratep. 71
A general equilibrium approach: the Hicksian IS-LM curvesp. 74
Monetary and fiscal policyp. 76
The monetarists' casep. 77
Special characteristics of developing countriesp. 79
Money demandp. 81
Introductionp. 81
Theoretical modelsp. 82
Empirical modelsp. 85
Specifying money demand functionsp. 89
Modelling empirical money demandp. 93
Demand for money in Indiap. 97
Exploring the role of alternative ancillary variables in China's money demandp. 105
Monetary institutions in developing countriesp. 112
The central bank and its functionsp. 112
The commercial banks: the creation of bank depositsp. 114
The changing pattern of commercial banking in developing countriesp. 118
Central bank independencep. 120
Central banking in the 'Bank of England Group' of developing countriesp. 123
Monetary policy transmission, rules and strategiesp. 126
Introductionp. 126
The transmission mechanism of monetary policyp. 126
Monetary policy reaction functionsp. 134
Monetary policy frameworksp. 141
Some developments in fiscal policy analysisp. 147
Conclusionp. 149
Money, inflation and growthp. 153
The causes of inflationp. 153
The effects of inflation on growthp. 161
The case against inflationp. 172
Major problems and policies for stabilization in developing countriesp. 176
The Phillips curvep. 178
A model of inflation generation and stabilizationp. 180
Exchange rate policyp. 184
Does the exchange rate matter?p. 184
Fixed exchange ratesp. 187
Real exchange rate targeting and PPP rulesp. 194
Fear of floatingp. 195
Classifying exchange rate regimesp. 197
Debt and crisesp. 199
Developing countries' borrowing before 1973p. 200
Debt problems after 1973p. 201
Benefits and costs of default theoryp. 202
Application of the model to the debt crisis of 1982p. 204
Managing the debt crisisp. 205
Policy responses to the debt crisis of 1982p. 208
The International Monetary Fund's and the World Bank's Heavily Indebted Poor Countries (HIPC) initiativep. 211
Financial crises in the 1990sp. 212
Sudden stopsp. 214
Theoretical modelsp. 215
Balance sheets, liability dollarization and monetary policyp. 217
Preventing crises, and early warning systems (EWS)p. 220
A small model of Indiap. 221
The international financial institutionsp. 234
Introductionp. 234
The need for international monetary reservesp. 235
The exchange rate and the need for reservesp. 236
Problems of international liquidityp. 237
The nature and role of SDRsp. 240
The Extended Fund Facilityp. 248
The Trust Fundp. 249
Reforming the IMFp. 249
Measuring the impact of IMF programmes on economic performancep. 251
Referencesp. 255
Indexp. 290
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9780230003347
ISBN-10: 0230003346
Audience: Tertiary; University or College
Format: Paperback
Language: English
Number Of Pages: 302
Published: 1st August 2007
Country of Publication: GB
Dimensions (cm): 23.5 x 15.5  x 2.0
Weight (kg): 0.51
Edition Number: 3
Edition Type: Revised