Money and monetary policy in less developed countries : a survey of issues and evidence

Particularly in the last decade and a half, much thought has been given to the adaptation of monetary theory to monetary management in less developed countries, adding nuances to it, honing the techniques of analysis and building up a substantial body of empirical knowledge in the field. As a result, not only have the academics' perceptions of the underlying economic theory improved, but also the economic policy makers and central bankers in LDCs have been able to gain insights and understanding of the strengths and weaknesses of monetary policies. This volume of reading is designed to attenuate such difficulties by bringing together in one place selections of work in money, monetary policy, and the financial intermediation process of LDC's, that it is hoped will help, apart from becoming a useful teaching aid to universities, both students and policymakers alike. Read more... Abstract: Particularly in the last decade and a half, much thought has been given to the adaptation of monetary theory to monetary management in less developed countries, adding nuances to it, honing the techniques of analysis and building up a substantial body of empirical knowledge in the field. As a result, not only have the academics' perceptions of the underlying economic theory improved, but also the economic policy makers and central bankers in LDCs have been able to gain insights and understanding of the strengths and weaknesses of monetary policies. This volume of reading is designed to attenuate such difficulties by bringing together in one place selections of work in money, monetary policy, and the financial intermediation process of LDC's, that it is hoped will help, apart from becoming a useful teaching aid to universities, both students and policymakers alike Content: Other Titles of Interest, Page ii Front Matter, Page iii Copyright, Page iv Dedication, Page v ABOUT THE EDITORS, Page vi PREFACE, Pages xi-xii, Warren L. Coats Jr., Deena R. Khatkhate ACKNOWLEDGEMENTS, Pages xiii-xiv Money and Monetary Policy in Less Developed Countries: Survey of Issues and Evidence, Pages 3-33, W.L. Coats Jr., D.R. Khatkhate 1 - Financial Development and Economic Growth in Underdeveloped Countries, Pages 37-54, H.T. Patrick The Promotion of the “Banking Habit” and Economic Development, Pages 55-69, R.C. Porter Financial Intermediation and Economic Growth in Less Developed Countries: A Theoretical Approach, Pages 71-84, V. Galbis Production and Monetization in the Subsistence Sector, Pages 85-93, J.G. Borpujari The Velocity of Money and Per Capita Income in Developing Economies: Malaysia and Singapore, Pages 95-106, B.K. Short Money and Capital or Financial Deepening in Economic Developments?, Pages 107-113, M.J. Fry Some Aspects of Financial Policies and Central Banking in Developing Countries, Pages 115-129, V.V. Bhatt 2 - Analytic Basis of the Working of Monetary Policy in Less Developed Countries, Pages 131-147, D.R. Khatkhate A Primer on Inflation, Pages 149-163, A.C. Harberger The Efficacy of Monetary Rules for LDCs, Pages 165-181, W.L. Coats Jr. Recent Evolution of Monetary Policy in India, Pages 183-209, V.G. Pendharkar, M. Narasimham 1 - Cross Country Inflation Evidence of the Moneyness of Time Deposits, Pages 213-220, J. Conlisk Time Deposits in the Definition of Money: Further Cross Country Inflation Evidence, Pages 221-225, D.P. Villanueva, N.S. Arya Monetization of Developing Countries, Pages 227-240, A.G. Chandavarkar Effects of Banking Development on the Demand for Money, Pages 241-254, B. Aghevli The Demand for Money: Evidence from Developed and Less Developed Economies, Pages 255-278, J.O. Adekunle The Demand for Money and Its Components in Argentina: Annual Estimations 1935-69, Pages 279-298, T.J.T. Balino Black-Market Exchange-Rate Expectations and the Domestic Demand for Money: Some Empirical Results, Pages 299-305, M.I. Blejer Variable Expectations and the Demand for Money in High Inflation Countries, Pages 307-327, M.S. Khan The Ability of the Monetary Authorities to Control the Stock of Money in LDCs, Pages 329-333, Y. Chul Park A Money Multiplier Model for a Developing Economy: The Venezuelan Case, Pages 335-345, D.R. Khatkhate, V.G. Galbis, D.P. Villanueva Government Deficits and the Inflationary Process in Developing Countries, Pages 347-370, B.B. Aghevli, M.S. Khan Money Supply Implications of Commercial Banks' Financing of Government Debt in Developing Countries, Pages 371-385, W.L. Coats Jr., D.R. Khatkhate Narrow Security Markets and Monetary Policy: Lessons from Pakistan, Pages 387-400, R.C. Porter The Use of Reserve Requirements in Developing Countries, Pages 401-421, W.L. Coats Jr. Central Bank Policies and Inflation A Case Study of Four Less Developed Economies, 1949-57, Pages 423-439, J. Ahrensdorf Monetary Control when Demand for Cash is Unpredictable A Proposal for Stabilizing the Money Multiplier in Portugal, Pages 441-448, M.J. Fry 2 - Interest Rate Determination in Underdeveloped Rural Areas, Pages 449-464, A. Bottomley On the Formation of Usurious Interest Rates in Backward Agriculture, Pages 465-477, A. Bhaduri Interest Rates and the Structure of Agricultural Credit Markets, Pages 479-490, M. Long Some Aspects of Interest Rate Policies in Less Developed Economies: The Experience of Selected Asian Countries, Pages 491-530, A.G. Chandavarkar A Revisit to Interest Rates Outside the Organized Money Markets of Underdeveloped Countries, Pages 531-548, U. Tun Wai Credit Controls as Instruments of Development Policy in the Light of Economic Theory, Pages 549-560, O.E.G. Johnson Selective Credit Controls in Underdeveloped Economies, Pages 561-569, I.G. Patel Saving and Flow of Funds Analysis: A Tool for Financial Planning in India, Pages 571-587, V.V. Bhatt Operation of Selective Credit Policies in Less Developed Countries: Certain Critical Issues, Pages 589-603, D.R. Khatkhate, D.P. Villanueva Farm Size and Credit Policy, Pages 605-616, C.H. Hanumantha Rao Credit Planning in India: Its Rationale and Content, Pages 617-629, M. Narasimham The Exchange Rate as an Instrument of Policy in a Developing Country, Pages 631-641, O.E.G. Johnson Exchange Rate Policies for Developing Countries, Pages 643-661, A.B. Crockett, S.M. Nsouli What Kind of Macroeconometric Model for Developing Economies?, Pages 665-674, L.R. Klein Toward a Monetary Model for Developing Countries, Pages 675-684, Yung Chul Park Credit Policy and the Balance of Payments in Developing Countries, Pages 685-711, B.B. Aghevli, M.S. Khan An Analysis of Price and Output Behavior in the Indian Economy: 1951-73, Pages 713-737, I.J. Ahluwalia A Semiannual Macroeconometric Model of the Philippines, 1967-76, Pages 739-762, D.P. Villanueva Readings in Money and Banking in the LDC's: Bibliography, Pages 763-810 Index, Pages 811-827 Money and Monetary Policy in Less Developed Countries: A Survey of Issues and Evidence focuses on monetary policy, the financial intermediation process, and the role of money in economic development in less developed countries (LDCs). Topics covered include financial development and economic growth in underdeveloped countries; instruments and techniques used in the implementation of monetary policy: and econometric policy models. This book is comprised of 46 chapters and begins with a discussion on the main lines of thought in the field of money and monetary policy in LDCs, with emphasis on the significant empirical results. The reader is then introduced to the role of money in the development process; production and monetization in the subsistence sector; some aspects of financial policies and central banking in developing countries; and the efficacy of monetary rules for LDCs. The subsequent chapters explore monetary policy instruments such as interest rates, credit controls, and exchange rates; credit policy and the balance of payments in developing countries; and price and output behavior in the Indian economy from 1951 to 1973. A semiannual macroeconometric model of the Philippines for the period 1967-1976 is also described. This monograph will be a valuable resource for economists, economic policymakers, and central bankers as well as students. Edited By Warren L. Coats, Jr. And Deena R. Khatkhate. Readings In Money And Banking In The Ldc's : Bibliography: P. 763-810. Includes Bibliographies And Index.