Financial Markets and Investment Finance in India: Implications for Monetary Transmission
The goal of the present chapter is to review the extant literature to summarize and outline the broad contours of the work around monetary transmission channels in India as well as shed light on some of the key features and changes in the Indian financial system with an attempt to broadly link the two. Notwithstanding several changes since 1991, Indian financial markets are still a long way away from being an effective conduit of monetary policy. They do not provide banks with enough competition. Further liberalisation, like FSLRC-proposed changes, may change that.
KeywordsMonetary Policy Financial Market Mutual Fund Trade Credit Bond Market
The author would like to acknowledge excellent research assistance by Mandar Kagade on an earlier draft of this chapter and extremely valuable comments from the editors and an anonymous referee.
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