Financial Liberalization in India: An assessment of its nature and outcomes C.P. Chandrasekhar and Parthapratim Pal

Providing a descriptive analysis of the Indian experience with the process of financial liberalisation, this paper argues that it has led to increased financial fragility, currently epitomised by the irrational boom in the Indian stock market; a deflationary macroeconomic stance with adverse effects on public capital formation, employment generation and poverty reduction; and finally, a credit squeeze affecting the real economy.

financial_liberalization (Download the full text in PDF format)