Book Review: Y.V. Reddy, Economic Policies and India’s Reform Agenda: New Thinking
| Published date | 01 August 2013 |
| DOI | 10.1177/0015732513496622 |
| Author | Anil K. Kanungo |
| Date | 01 August 2013 |
| Subject Matter | Book Reviews |
Foreign Trade Review
48(3) 431–436
©2013 Indian Institute of
Foreign Trade
SAGE Publications
Los Angeles, London,
New Delhi, Singapore,
Washington DC
DOI: 10.1177/0015732513496622
http://ftr.sagepub.com
Y.V. Reddy, Economic Policies and India’s Reform Agenda: New Thinking.
Hyderabad: Orient Blackswan. 2013. 268 pp. Price not mentioned.
The book is a timely contribution from Dr Y.V. Reddy, former Reserve Bank of
India (RBI) governor, whose advice continues to be adequately sought when the
world economy attempts to recuperate from a financial holocaust. It is a collection
of lectures he delivered at various forums which set the nation (re)thinking on
polices of reforms, creation of institutions and design of strategy essential to cor-
rect fallacies and address infirmities and asymmetries in the global financial
architecture.
The book contains three sections widely encapsulating areas of economic pol-
icy, finance and global economy. The first section, containing seven essays with a
strong interlinking among the issues, focuses on macroeconomic policies, starting
with governance in central banks. While handling issue of governance, Dr Reddy
has voiced concerns as to whether governance arrangements in emergency situa-
tions should be specifically designed, as normal arrangements are unable to cope
with such situations. In a financial crisis of this nature, the sovereign or the central
government should virtually take over the function of coordination among the
regulators and monetary authorities. Whereas, in a normal situation, the central
bank would play a key role in managing stability issues due to its expertise and
being the lender of last resort. As the experience of recent crisis significantly
demonstrates, it is the sovereign who will play a central role when conditions of
instability turn into a crisis.
Another important element suggested by academics which the author approves
of is to create an institution...
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