05976oam 22011534 450 991081262560332120240402050234.01-4623-9212-11-4527-7733-01-4518-6990-81-282-84083-59786612840838(CKB)3170000000055037(EBL)1607889(SSID)ssj0000943992(PQKBManifestationID)11559068(PQKBTitleCode)TC0000943992(PQKBWorkID)10978556(PQKB)10217571(OCoLC)763002643(IMF)WPIEE2008131(MiAaPQ)EBC1607889(EXLCZ)99317000000005503720020129d2008 uf 0engurcnu||||||||txtccrChallenges to Monetary Policy from Financial Globalization : The Case of India /Ananthakrishnan Prasad, Charles Kramer, Hélène Poirson1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (45 p.)IMF Working PapersIMF working paper ;WP/08/131Description based upon print version of record.1-4519-1443-1 Includes bibliographical references.Contents; I. Introduction; II. How Financially Globalized is India?; A. International Comparison; B. India's Globalization over Time; III. How Does Financial Globalization Affect the Monetary Environment?; IV. Possible Policy Responses; A. How Could Further Financial Globalization Affect Monetary Operations?; B. How Could Further Financial Globalization Affect Monetary Strategy?; Boxes; 1. India: Key Capital Account Restrictions; 2. Turkey; 3. Malaysia; Table; 1. Monetary Instruments in the Most Financially Globalized Countries; Figures; 1. Measures of Financial Openness2. Measures of Capital Account Openness, 2000-05 3. Financial Openness and Policy Regime, 2000-06; 4. India: Capital Flows; 5a. India: Foreign Exchange Market; 5b. India: Monetary Conditions; 6. Measures of Volatility; 7a. Financial Operations and Exchange Rate Volatility, 2000-06; 7b. Financial Openness and Exchange Market Pressure Index, 2000-06; 8. Financial Openness and Volatility in Monetary Conditions Index, 2000-06; 9. Financial Openness and Volatility in Reserve Money, 2000-06; 10. Financial Openness and Correlation with U.S. Monetary Conditions Index, 2000-0611a. Policy Regime, Financial Openness, and Volatility in Monetary Conditions Index, 2006-06 11b. Policy Regime and Foreign Exchange Market, 2000-06; 12. Capital Flows and Central Bank Transparency, 2000-05; Appendix; ReferencesThe question of how India should adapt monetary policy to ongoing financial globalization has gained prominence with the recent surge in capital inflows. This paper documents the degree to which India has become financially globalized, both in absolute terms and relative to emerging and developed countries. We find that despite a relatively low degree of openness, India's domestic monetary conditions are highly influenced by global factors. We then review the experiences of countries that have adapted to financial globalization, drawing lessons for India. While we find no strong relationship between the degree of stability in monetary conditions and the broad monetary policy regime, our findings suggest that improvements in monetary operations and communication?sometimes prompted by a shift to an IT regime?have helped stabilize broader monetary conditions. In addition, the experience of countries which used non-standard instruments suggests that room to regulate capital flows effectively through capital controls diminishes as financial integration increases.IMF Working Papers; Working Paper ;No. 2008/131Monetary policyIndiaFinanceIndiaGlobalizationIndiaBanks and BankingimfExports and ImportsimfForeign ExchangeimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfInternational InvestmentimfLong-term Capital MovementsimfCentral Banks and Their PoliciesimfBankingimfCurrencyimfForeign exchangeimfInternational economicsimfExchange ratesimfCapital inflowsimfOpen market operationsimfExchange rate arrangementsimfBanks and bankingimfCapital movementsimfIndiaimfMonetary policyFinanceGlobalizationBanks and BankingExports and ImportsForeign ExchangeBanksDepository InstitutionsMicro Finance InstitutionsMortgagesInternational InvestmentLong-term Capital MovementsCentral Banks and Their PoliciesBankingCurrencyForeign exchangeInternational economicsExchange ratesCapital inflowsOpen market operationsExchange rate arrangementsBanks and bankingCapital movements332.4954Prasad Ananthakrishnan1722283Kramer Charles419913Poirson Hélène1082608DcWaIMFBOOK9910812625603321Challenges to Monetary Policy from Financial Globalization4122519UNINA