Logo

Synopsis Dr. Rangarajan's contributions are well known and well documented in a number of publications, both Indian and international. But it has been strongly felt, particularly by his colleagues who worked closely with him, that his research contributions to various sectors of Indian economy are not available at one place. The present publication is an attempt to fill this gap and to provide easy access to some of his path-breaking articles which are frequently referred to. Dr. Rangarajan's contributions are not confined to monetary economics, as one may usually think, but they cover a wide range-agriculture, industry, planning, banking, finance, balance of payments, exchange rate policy, and international monetary system. These subjects have been covered in the 24 selected essays which have been arranged under four sections in two volumes. The first section covers agriculture, industry and the economy. The chapter 1 in this section, entitled "Agricultural Growth and Industrial Performance" is perhaps one of the earliest studies to express fully the linkage between agriculture and industry. This section also includes a comprehensive review of the recent economic reforms. The second section deals with issues relating to monetary and financial sectors-providing the analytical foundations of the Chakravarty Committee Report; an econometric model to study the relative impact of money supply on output and prices; and also includes detailed essays on the role of monetary policy and financial sector reforms. The third section deals with fiscal policy issues from the broader perspective of macroeconomic management, including an article on the dynamics of debt accumulation which is perhaps one of the earliest articles to be published in India in this area. A reasonably large sized econometric model is also presented to study the impact of government expenditures financed through alternative channels. The last section includes articles on exchange rate management and on the evolution of the balance of payment scenario in the country. The Report of the High Level Committee on Balance of Payments, of which Dr. Rangarajan was the Chairman, is also included. This report is the only source which outlines the reasons for the shift of the exchange rate arrangement, initially to LERMS, and later to a market determined exchange rate system. The publication carries an exhaustive introduction written by Dr. R. Kannan.