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Title: Monetary Policy
Book by Ray, Partha
- GenresNonfictionEconomics
224 pages, Unknown Binding
First published July 26, 2013
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Displaying 1 - 5 of 5 reviews
March 29, 2020
I am a novice in regard to how RBI functions, let alone the monetary policy aspect of the institution.
This book will make you appreciate the monetary policy part of the RBI.
Even though it is written in lucid manner, you still might have some trouble in absorbing certain terms if you are not familiar with economics subject. Yet, I believe everyone should read it for gaining some objective understanding of the topic covered. You will feel wiser by the time you finish reading this book.
One thing must be noted, this book was published in 2013. Hence, it might feel outdated. But if you are alien when it comes to monetary policy in India, this book will be very helpful and you will gain some insights.
Also, there are some basic spelling mistakes, but you will not be bothered by them.
This book will make you appreciate the monetary policy part of the RBI.
Even though it is written in lucid manner, you still might have some trouble in absorbing certain terms if you are not familiar with economics subject. Yet, I believe everyone should read it for gaining some objective understanding of the topic covered. You will feel wiser by the time you finish reading this book.
One thing must be noted, this book was published in 2013. Hence, it might feel outdated. But if you are alien when it comes to monetary policy in India, this book will be very helpful and you will gain some insights.
Also, there are some basic spelling mistakes, but you will not be bothered by them.
September 27, 2019
I come from a non Economics background but strongly analytical background, with a particular interest in Monetary Policy stemming primarily from a fascination about how money lubricates everyday transactions in our economy, and how we forgo its understated importance. Money does not magically appear -- it is "just another commodity", with its own economics! The way I think of it (informed by this reading as well) is that it is "commodity in chief".
This book is a solid brief introduction to the various characters that make up the story of money. It is simple, and a good starting point to delve into more details.
This book is a great introduction to monetary policy making in India historically. The style is simple, but I think the content gets increasingly technical in the last quarter of the book, which makes it hard for non monetary policy folks to understand everything. I got an understanding of majorly, the connection between the government and the Reserve Bank of India, and the balance of power between the two entities over time. Further, I got an understanding of the sophistication of the RBI's methods and the evolution of Economic theory in general over time wrt money. What I would now really appreciate is a case study about a specific monetary policy decision (in India) and its ramifications, to fully appreciate things!
This book is a solid brief introduction to the various characters that make up the story of money. It is simple, and a good starting point to delve into more details.
This book is a great introduction to monetary policy making in India historically. The style is simple, but I think the content gets increasingly technical in the last quarter of the book, which makes it hard for non monetary policy folks to understand everything. I got an understanding of majorly, the connection between the government and the Reserve Bank of India, and the balance of power between the two entities over time. Further, I got an understanding of the sophistication of the RBI's methods and the evolution of Economic theory in general over time wrt money. What I would now really appreciate is a case study about a specific monetary policy decision (in India) and its ramifications, to fully appreciate things!
November 3, 2019
The book provides a bird's eye view, about how monetary policy is framed in India. The introduction provides how monetary policy is framed around the world, what are the factors which are taken into consideration.
Post introduction part, consist of the historical evolution of, how the monetary policy came into being, as it is today(2011). Well, for me that part was a bit boring, with some exciting things here & there, including chapters like bank nationalization, monetary targeting etc.
The book provides a conclusion with heading ‘Monetary policy in recent times’, just before the epilogue, reading that part would be sufficient to get the crux of the book. So my suggestion to anyone reading it for the first time, & for the one who is less interested in reading historical evolution with great details, is that you can just read introduction & go to Monetary policy in recent times to get the whole book.
My experience of reading it was not good, as I lost interest in it when the historical evolution chapter started which cover the major part of the book. I think there must be more good books on Monetary policy, then this one.
Post introduction part, consist of the historical evolution of, how the monetary policy came into being, as it is today(2011). Well, for me that part was a bit boring, with some exciting things here & there, including chapters like bank nationalization, monetary targeting etc.
The book provides a conclusion with heading ‘Monetary policy in recent times’, just before the epilogue, reading that part would be sufficient to get the crux of the book. So my suggestion to anyone reading it for the first time, & for the one who is less interested in reading historical evolution with great details, is that you can just read introduction & go to Monetary policy in recent times to get the whole book.
My experience of reading it was not good, as I lost interest in it when the historical evolution chapter started which cover the major part of the book. I think there must be more good books on Monetary policy, then this one.
January 17, 2015
I feel scared to even begin this; review it says right at top and suffice it is to say that I was out of my depths a few weeks before as to what was the purpose of central banks(read RBI) for my dad wasn't allowed to deposit his money there? Now without making a mockery of myself or being offensive to the monetarists; I shall refer to this piece henceforth as an 'Essay'.
The author remains considerate towards the readers knowledge of how monetary policy works, and honors it by hammering conceptual points repeatedly or simply refraining from elaboration when it's futile. The narrative is linear and can be broadly divided into three categories. RBI before independence; during Indra's regime (Banks nationalization era) and the 'modern' times. Beginning from 1934 to today; 75 years of RBI, and its evolution as an institute and the center of monetary policy in Indian context. The foundation of RBI as a bankers bank, to its use as a means to achieve fiscal stand of the government and finally coming in tune with the worldwide established and more conventional role of Central Banking. The story is not different from the growth of India and its economy.
In fact John Maynard Keynes (arguably the greatest economics of 20th century) himself played a key role in establishment of RBI. Initial years of RBI are marked by war financing, huge sterling resources and their eventual use. The excitement of new independence and its role in achieving the goals first and second planning commission set forth. Soon the narrative shifts to a policy shift that left the Indian monetary policy as a hostage to the government fiscal stand (deficit financing, issuing ad hoc treasury bills and largely limited to financing the government debt all the while neglecting commercial sector needs), which Partha mentions prompted RBI for some soul searching and hence Chakravarty committee formulation.
The subsequent period after Chakravarty committee recommendations marked a change in RBI's operating stance from merely as a tool for deficit financing to a more market oriented monetary policy. The shift from Monetary targeting to indirect instruments of Monetary Policy or more specifically Open Market Operations. thus use of Repo Rate as a policy rate.
The Book serves a fantastic purpose of introducing various monetary instruments in a lucid manner.
This one is for you if jargon like OMO, repo, reverse repo, CRR, MSS, QE etc. puts you off, and if you're as clueless to them as I was; this Oxford Short Introduction clearly achieves the purpose it sets for it "A stimulating and accessible guide to Monetary Policy in India.
The author remains considerate towards the readers knowledge of how monetary policy works, and honors it by hammering conceptual points repeatedly or simply refraining from elaboration when it's futile. The narrative is linear and can be broadly divided into three categories. RBI before independence; during Indra's regime (Banks nationalization era) and the 'modern' times. Beginning from 1934 to today; 75 years of RBI, and its evolution as an institute and the center of monetary policy in Indian context. The foundation of RBI as a bankers bank, to its use as a means to achieve fiscal stand of the government and finally coming in tune with the worldwide established and more conventional role of Central Banking. The story is not different from the growth of India and its economy.
In fact John Maynard Keynes (arguably the greatest economics of 20th century) himself played a key role in establishment of RBI. Initial years of RBI are marked by war financing, huge sterling resources and their eventual use. The excitement of new independence and its role in achieving the goals first and second planning commission set forth. Soon the narrative shifts to a policy shift that left the Indian monetary policy as a hostage to the government fiscal stand (deficit financing, issuing ad hoc treasury bills and largely limited to financing the government debt all the while neglecting commercial sector needs), which Partha mentions prompted RBI for some soul searching and hence Chakravarty committee formulation.
The subsequent period after Chakravarty committee recommendations marked a change in RBI's operating stance from merely as a tool for deficit financing to a more market oriented monetary policy. The shift from Monetary targeting to indirect instruments of Monetary Policy or more specifically Open Market Operations. thus use of Repo Rate as a policy rate.
The Book serves a fantastic purpose of introducing various monetary instruments in a lucid manner.
This one is for you if jargon like OMO, repo, reverse repo, CRR, MSS, QE etc. puts you off, and if you're as clueless to them as I was; this Oxford Short Introduction clearly achieves the purpose it sets for it "A stimulating and accessible guide to Monetary Policy in India.
October 13, 2016
One of the pre-requisite for any one interested in monetary policy research.
Displaying 1 - 5 of 5 reviews