06039oam 22011774 450 991096554600332120250426110935.01-4623-9212-11-4527-7733-01-4518-6990-81-282-84083-59786612840838(CKB)3170000000055037(EBL)1607889(SSID)ssj0000943992(PQKBManifestationID)11559068(PQKBTitleCode)TC0000943992(PQKBWorkID)10978556(PQKB)10217571(OCoLC)763002643(IMF)WPIEE2008131(IMF)WPIEA2008131WPIEA2008131(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 policyIndiaFinanceIndiaGlobalizationIndiaBankingimfBanks and BankingimfBanks and bankingimfBanksimfCapital inflowsimfCapital movementsimfCentral Banks and Their PoliciesimfCurrencyimfDepository InstitutionsimfExchange rate arrangementsimfExchange ratesimfExports and ImportsimfForeign ExchangeimfForeign exchangeimfInternational economicsimfInternational InvestmentimfLong-term Capital MovementsimfMicro Finance InstitutionsimfMortgagesimfOpen market operationsimfIndiaimfMonetary policyFinanceGlobalizationBankingBanks and BankingBanks and bankingBanksCapital inflowsCapital movementsCentral Banks and Their PoliciesCurrencyDepository InstitutionsExchange rate arrangementsExchange ratesExports and ImportsForeign ExchangeForeign exchangeInternational economicsInternational InvestmentLong-term Capital MovementsMicro Finance InstitutionsMortgagesOpen market operations332.4954Prasad Ananthakrishnan1815899Kramer Charles419913Poirson Hélène1082608DcWaIMFBOOK9910965546003321Challenges to Monetary Policy from Financial Globalization4371511UNINA