Quest for Restoring Financial Stability in India
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Quest for Restoring Financial Stability in India by Viral Acharya
Beyond the headline-grabbing issues, the Indian economy is struggling to solve a critical problem: How to restore and maintain financial stability on a durable basis. In this book titled, Quest for Restoring Financial Stability in India, Former Deputy Governor of RBI, Dr. Viral V. Acharya, talks about his quest for restoring financial stability in India and offers a concrete plan for sustained improvement. Dr Acharya shares a feasible plan to address the recapitalization needs of public sector banks, offering solutions on how to improve credit allocation by credit intermediaries and establish viable and efficient capital markets. Elucidating the need-of-the-hour reforms, this book also raises several stark and unanswered questions related to the re-emergence of fiscal dominance in India, not just of monetary policy tools but also of banking regulations. It makes a persuasive case for striking the right balance between the government, centralbank, private sector and markets, in order to improve long-run growth prospects for the real economy.
"The solutions Acharya offers are many, and policy-makers would do well to have a closer look at the fairly long list provided in the various chapters of the book.. a must for students of finance and banking, academics, market participants, policy-makers and the informed citizen." -- Dr. Usha Thorat, Former Deputy Governor, Reserve Bank of India * The Hindu Business Line, 3 August 2020 *
Professor Acharya argues pursuasively that India′s original sin is fiscal dominance... (This) erudite work will be useful for any student of the Indian economy (as well as the mandarins in the Finance Ministry). It teaches, but in a very readable way.
-- Dr. Raghuram Rajan, Former Governor, Reserve Bank of India * The Economic Times, 30 July 2020 *
The conviction and concern with which Viral narrates the frontline battles of a policymaker to influence economic policy debates is the second reason I commend this book. The earnestness with which he writes about them is both endearing and compelling. -- Dr. Duvvuri Subbarao * Former Governor, Reserve Bank of India *
Dr. Viral Acharya seamlessly combines theoretical first principles with market realities and policy prudence. He demonstrates how inextricably the financial, the fiscal, the regulatory and the external are connected and provides a unifying theme to understand their recent evolution. Fiscal policy and the financial sector will be at the fore during and after COVID-19, making this book particularly timely and relevant. -- Dr. Sajjid Chinoy * Chief India Economist, J. P. Morgan *
Viral Acharya is a straight talker. Even when he was in office, he was never diplomatic while delivering his speeches. They were not uniformly liked but he didn′t change his style. While fiscal dominance is the central theme, the book is also replete with micro details of how the system is gamed by different stake holders.
-- Tamal Bandyopadhyay * Consulting Editor, Business Standard & Senior Adviser, Jana Small Finance Bank *
Viral is perhaps very humble about the contribution of his book to the macro and finance literature. A huge contribution of Viral′s book is to broaden the definition of fiscal dominance - beyond its effect on monetary policies, and to include the effect on financial regulations more broadly. This is especially important for a full service central bank of a large emerging market like India. -- Dr. Prachi Mishra * MD/Chief India Economist Goldman Sachs India Securities *
Dr Acharya’s passion for making a difference in the monetary and regulatory history of Reserve Bank of India comes across through the pages of the book. He has produced a unique book that is informative, analytical, contextual, and without doubt, a lasting contribution. -- Dr Y. V. Reddy * Former Governor, Reserve Bank of India *
Personal testimonies of central bankers written in real time are few and far between, especially for large emerging economies. Viral Acharya’s account of his efforts as Deputy Governor of the Reserve Bank of India to resist the ‘fiscal dominance’ undermining the pursuit of financial stability is both compelling and often moving. We can all learn from his experience, not least because fiscal dominance is growing around the world. -- Mervyn King * British Economist and Former Governor of the Bank of England (2003—2013) *
The art of central banking is essentially about balancing conflicting objectives, given the available degrees of freedom in the political-economy context. The author, bringing an insider’s perspective to some of the most hotly contested policy issues in the recent past, presents a comprehensive analysis of the various manifestations of this constant struggle and underscores the need for a wider public debate in the quest for financial stability. The speeches included in the collections are all works of considerable rigour and traverse a broad range of issues which are very useful for practitioners and academics alike and a must read for anyone interested in the culture and practice of policymaking in India. -- Shyamala Gopinath * Chairperson of HDFC Bank and Former Deputy Governor, Reserve Bank of India (2004–2011) *
Dr Viral Acharya, one of the foremost financial economists in the world, served as the Deputy Governor of the Reserve Bank of India during a tumultuous period. His insightful speeches on the challenges the Indian financial and monetary system faced always cut to the core of the issues, in simple, direct and extremely readable language. In this book, he brings together the edited speeches along with connecting commentary to explain what the Reserve Bank was trying to do. It is an important and timely contribution to our understanding of the Indian economy and deserves to be read carefully by anyone interested in understanding where India is going.
-- Dr. Raghuram Rajan * Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business and Former Governor, Reserve Bank of India (2013–2016) *
Viral Acharya has produced a comprehensive and valuable guide to understanding the multiple issues associated with financial stability and monetary-policy independence—a scholarly presentation linking theory with the issues of the day. Fiscal dominance and its impact on financial markets, monetary policy and regulation constitute the core of the book. Policymakers need to ponder over the concerns raised in the book. -- C. Rangarajan * Chairman of the Madras School of Economics; Former Chairman, Economic Advisory Council to the Prime Minister (2009–2014) and Former Governor, Reserve Bank of India (1992–1997) *
India’s economic reforms since the early 1990s lifted many millions out of poverty. Yet the stubborn persistence of a distorted state-dominated banking sector increasingly threatens the country’s financial stability and growth. Already one of the world’s leading scholars on the causes and treatment of financial crises, Viral Acharya joined the Reserve Bank of India in January 2017, intent on advocating for badly needed reforms. This book, which collects important speeches from his eventful tenure, will be a required reading for anyone seeking to understand the political obstacles that can impede principled and effective central bank policy. A new preface linking India’s longstanding monetary and regulatory challenges to public-sector fiscal dominance is a tour de force of broad applicability. -- Maurice Obstfeld * Professor of Economics at the University of California, Berkeley and Former Chief Economist at IMF (2015–2018) *
This thought-provoking and lucid collection vividly portrays a key policymaker’s frontline battles to influence major policy debates in India. Dr Acharya’s intellectual rigour and honesty, along with his humility and grasp of practical realities, shine through in these speeches. It is fascinating to read his carefully considered views on how best to design and implement much-needed reforms to India’s financial system. -- Eswar Prasad * Tolani Senior Professor of Trade Policy at Cornell University and Former Chief of the Financial Studies Division at the IMF’s Research Department *
Speeches by Reserve Bank deputy governors are generally used as the vehicle for public expression of the bank’s thinking on issues. Dr Acharya’s speeches are different. They reveal his deep concern on several matters connected with the financial system and often his impatience with the pace of change. This is what makes them interesting and provocative. -- Yezdi Malegam * Chartered Accountant and Former Board Member of the Reserve Bank of India *
Viral Acharya was the Deputy Governor of the Reserve Bank of India during a very interesting period when debates were raging about the autonomy of the central bank and the stability of the financial system was under severe threat due to the proliferation of non-performing assets. With regard to these and other issues, Viral Acharya’s speeches in various forums were very frank, thought-provoking and received a critical acclaim from the discerning public. I am happy that his speeches are now being compiled in the form of a book and I have no doubt that this will be an important contribution to the history of our times. -- Narayanan Vaghul * Padma Bhushan and Former Chairman of ICICI Bank Limited *
Viral Acharya’s latest book represents distilled wisdom on how fiscal dominance can threaten financial stability. Combining both passion and rigour, it’s built on his prodigious academic knowledge, research and global experience in interacting with regulators and central bankers after the global financial crises as well as his practical experience as a deputy Governor of the reserve Bank of India. The book also contains constructive prescription for reform and is a must- read by all concerned with the dynamics of policymaking, especially central bankers. -- Usha Thorat * Member of Task Force on Off shore Rupee Market constituted by RBI and Former Deputy Governor of the Reserve Bank of India (2005–2010) *
Th e precipitous erosion of public sector bank balance sheets and consequent fall in bank lending growth in India in recent years are arguably the key causes of the country’s very concerning economic slowdown. Th is collection of erudite speeches delivered by viral Acharya in his all too short tenure at the reserve Bank of India is a very timely, important, closely argued and a passionate plea for all the measures that need to be taken to restore financial sector health, stability and growth in India. The essays are, at once, analytical, scholarly, deeply researched with solid empirics, and yet down to earth and written in a style that makes them very accessible to the concerned layman. informed by extensive knowledge of international practice and experience in the resolution of similar financial crises, he provides eminently doable practical solutions to the vexed problems at hand. What is unusual and touching is the connection he eloquently makes between the malfunctioning Indian financial sector and the travails faced by the everyday Indian. every page of this book exhibits Viral’s deep-felt engagement and concern for India’s current predicaments; it deserves to be read. -- Rakesh Mohan * Former Professor in the Practice of International Economics and Finance, Yale School of Management; Former Deputy Governor, Reserve Bank of India (2005–2009) and Former Executive Director of IMF (2012–2015) *
"Acharya’s book is technical and will be appreciated more by bankers than lay readers. However, he has tried to make the book accessible to readers with an elementary knowledge of finance." -- The Telegraph, 23 October 2020
"(The book) should be made part of any aspiring banker’s essential reading diet." -- Mint, 19 September 2020
"Central banking is somewhere between an art and a science… Acharya′s book is an excellent example… Acharya′s book is a must read for anyone who wants to understand why change is important and how it is hurting us." -- The New Indian Express, 24 September 2020
"The author’s commitment and passion come through this entire erudite intellectual discourse… there is no doubt that the book has brought some of the core issues involved in the relationship between the Central Bank and the government into sharp focus." -- The Book Review, September 2020
"Many concepts of banking, its effects and efforts are explained in a simple and engaging manner in this book, which is a library must-have." -- The Free Press Journal, 28 February 2021
Professor Acharya argues pursuasively that India′s original sin is fiscal dominance... (This) erudite work will be useful for any student of the Indian economy (as well as the mandarins in the Finance Ministry). It teaches, but in a very readable way.
-- Dr. Raghuram Rajan, Former Governor, Reserve Bank of India * The Economic Times, 30 July 2020 *
The conviction and concern with which Viral narrates the frontline battles of a policymaker to influence economic policy debates is the second reason I commend this book. The earnestness with which he writes about them is both endearing and compelling. -- Dr. Duvvuri Subbarao * Former Governor, Reserve Bank of India *
Dr. Viral Acharya seamlessly combines theoretical first principles with market realities and policy prudence. He demonstrates how inextricably the financial, the fiscal, the regulatory and the external are connected and provides a unifying theme to understand their recent evolution. Fiscal policy and the financial sector will be at the fore during and after COVID-19, making this book particularly timely and relevant. -- Dr. Sajjid Chinoy * Chief India Economist, J. P. Morgan *
Viral Acharya is a straight talker. Even when he was in office, he was never diplomatic while delivering his speeches. They were not uniformly liked but he didn′t change his style. While fiscal dominance is the central theme, the book is also replete with micro details of how the system is gamed by different stake holders.
-- Tamal Bandyopadhyay * Consulting Editor, Business Standard & Senior Adviser, Jana Small Finance Bank *
Viral is perhaps very humble about the contribution of his book to the macro and finance literature. A huge contribution of Viral′s book is to broaden the definition of fiscal dominance - beyond its effect on monetary policies, and to include the effect on financial regulations more broadly. This is especially important for a full service central bank of a large emerging market like India. -- Dr. Prachi Mishra * MD/Chief India Economist Goldman Sachs India Securities *
Dr Acharya’s passion for making a difference in the monetary and regulatory history of Reserve Bank of India comes across through the pages of the book. He has produced a unique book that is informative, analytical, contextual, and without doubt, a lasting contribution. -- Dr Y. V. Reddy * Former Governor, Reserve Bank of India *
Personal testimonies of central bankers written in real time are few and far between, especially for large emerging economies. Viral Acharya’s account of his efforts as Deputy Governor of the Reserve Bank of India to resist the ‘fiscal dominance’ undermining the pursuit of financial stability is both compelling and often moving. We can all learn from his experience, not least because fiscal dominance is growing around the world. -- Mervyn King * British Economist and Former Governor of the Bank of England (2003—2013) *
The art of central banking is essentially about balancing conflicting objectives, given the available degrees of freedom in the political-economy context. The author, bringing an insider’s perspective to some of the most hotly contested policy issues in the recent past, presents a comprehensive analysis of the various manifestations of this constant struggle and underscores the need for a wider public debate in the quest for financial stability. The speeches included in the collections are all works of considerable rigour and traverse a broad range of issues which are very useful for practitioners and academics alike and a must read for anyone interested in the culture and practice of policymaking in India. -- Shyamala Gopinath * Chairperson of HDFC Bank and Former Deputy Governor, Reserve Bank of India (2004–2011) *
Dr Viral Acharya, one of the foremost financial economists in the world, served as the Deputy Governor of the Reserve Bank of India during a tumultuous period. His insightful speeches on the challenges the Indian financial and monetary system faced always cut to the core of the issues, in simple, direct and extremely readable language. In this book, he brings together the edited speeches along with connecting commentary to explain what the Reserve Bank was trying to do. It is an important and timely contribution to our understanding of the Indian economy and deserves to be read carefully by anyone interested in understanding where India is going.
-- Dr. Raghuram Rajan * Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business and Former Governor, Reserve Bank of India (2013–2016) *
Viral Acharya has produced a comprehensive and valuable guide to understanding the multiple issues associated with financial stability and monetary-policy independence—a scholarly presentation linking theory with the issues of the day. Fiscal dominance and its impact on financial markets, monetary policy and regulation constitute the core of the book. Policymakers need to ponder over the concerns raised in the book. -- C. Rangarajan * Chairman of the Madras School of Economics; Former Chairman, Economic Advisory Council to the Prime Minister (2009–2014) and Former Governor, Reserve Bank of India (1992–1997) *
India’s economic reforms since the early 1990s lifted many millions out of poverty. Yet the stubborn persistence of a distorted state-dominated banking sector increasingly threatens the country’s financial stability and growth. Already one of the world’s leading scholars on the causes and treatment of financial crises, Viral Acharya joined the Reserve Bank of India in January 2017, intent on advocating for badly needed reforms. This book, which collects important speeches from his eventful tenure, will be a required reading for anyone seeking to understand the political obstacles that can impede principled and effective central bank policy. A new preface linking India’s longstanding monetary and regulatory challenges to public-sector fiscal dominance is a tour de force of broad applicability. -- Maurice Obstfeld * Professor of Economics at the University of California, Berkeley and Former Chief Economist at IMF (2015–2018) *
This thought-provoking and lucid collection vividly portrays a key policymaker’s frontline battles to influence major policy debates in India. Dr Acharya’s intellectual rigour and honesty, along with his humility and grasp of practical realities, shine through in these speeches. It is fascinating to read his carefully considered views on how best to design and implement much-needed reforms to India’s financial system. -- Eswar Prasad * Tolani Senior Professor of Trade Policy at Cornell University and Former Chief of the Financial Studies Division at the IMF’s Research Department *
Speeches by Reserve Bank deputy governors are generally used as the vehicle for public expression of the bank’s thinking on issues. Dr Acharya’s speeches are different. They reveal his deep concern on several matters connected with the financial system and often his impatience with the pace of change. This is what makes them interesting and provocative. -- Yezdi Malegam * Chartered Accountant and Former Board Member of the Reserve Bank of India *
Viral Acharya was the Deputy Governor of the Reserve Bank of India during a very interesting period when debates were raging about the autonomy of the central bank and the stability of the financial system was under severe threat due to the proliferation of non-performing assets. With regard to these and other issues, Viral Acharya’s speeches in various forums were very frank, thought-provoking and received a critical acclaim from the discerning public. I am happy that his speeches are now being compiled in the form of a book and I have no doubt that this will be an important contribution to the history of our times. -- Narayanan Vaghul * Padma Bhushan and Former Chairman of ICICI Bank Limited *
Viral Acharya’s latest book represents distilled wisdom on how fiscal dominance can threaten financial stability. Combining both passion and rigour, it’s built on his prodigious academic knowledge, research and global experience in interacting with regulators and central bankers after the global financial crises as well as his practical experience as a deputy Governor of the reserve Bank of India. The book also contains constructive prescription for reform and is a must- read by all concerned with the dynamics of policymaking, especially central bankers. -- Usha Thorat * Member of Task Force on Off shore Rupee Market constituted by RBI and Former Deputy Governor of the Reserve Bank of India (2005–2010) *
Th e precipitous erosion of public sector bank balance sheets and consequent fall in bank lending growth in India in recent years are arguably the key causes of the country’s very concerning economic slowdown. Th is collection of erudite speeches delivered by viral Acharya in his all too short tenure at the reserve Bank of India is a very timely, important, closely argued and a passionate plea for all the measures that need to be taken to restore financial sector health, stability and growth in India. The essays are, at once, analytical, scholarly, deeply researched with solid empirics, and yet down to earth and written in a style that makes them very accessible to the concerned layman. informed by extensive knowledge of international practice and experience in the resolution of similar financial crises, he provides eminently doable practical solutions to the vexed problems at hand. What is unusual and touching is the connection he eloquently makes between the malfunctioning Indian financial sector and the travails faced by the everyday Indian. every page of this book exhibits Viral’s deep-felt engagement and concern for India’s current predicaments; it deserves to be read. -- Rakesh Mohan * Former Professor in the Practice of International Economics and Finance, Yale School of Management; Former Deputy Governor, Reserve Bank of India (2005–2009) and Former Executive Director of IMF (2012–2015) *
"Acharya’s book is technical and will be appreciated more by bankers than lay readers. However, he has tried to make the book accessible to readers with an elementary knowledge of finance." -- The Telegraph, 23 October 2020
"(The book) should be made part of any aspiring banker’s essential reading diet." -- Mint, 19 September 2020
"Central banking is somewhere between an art and a science… Acharya′s book is an excellent example… Acharya′s book is a must read for anyone who wants to understand why change is important and how it is hurting us." -- The New Indian Express, 24 September 2020
"The author’s commitment and passion come through this entire erudite intellectual discourse… there is no doubt that the book has brought some of the core issues involved in the relationship between the Central Bank and the government into sharp focus." -- The Book Review, September 2020
"This book is worth a read—by students, practitioners, commentators, Mint Street and New Delhi. Including, and perhaps especially, if you are likely to disagree with some of the arguments and would like to further the debate."
-- Financial Express, 30 August 2020"Many concepts of banking, its effects and efforts are explained in a simple and engaging manner in this book, which is a library must-have." -- The Free Press Journal, 28 February 2021
Viral V. Acharya is the C. V. Starr Professor of Economics in the Department of Finance at New York University Stern School of Business (NYU Stern). He was the Deputy Governor of the Reserve Bank of India (RBI) from 23 January 2017 to 23 July 2019, in charge of monetary policy, financial markets, financial stability and research. Dr Acharya has been the Director of the National Stock Exchange of India and the NYU Stern Initiative on the Study of Indian Capital Markets, and a member of the Economic Advisory Committee of the Financial Industry Regulation Authority (FINRA), International Advisory Board of the Securities Exchange Board of India, Advisory Council of the Bombay Stock Exchange Training Institute and Academic Research Council Member of the Center for Advanced Financial Research and Learning (CAFRAL, India). In addition, he has served as an academic advisor to the Federal Reserve Banks of Chicago, Cleveland, New York and Philadelphia; the Federal Reserve Board of Governors and the Advisory Scientific Council of the European Systemic Risk Board. Dr Acharya’s primary research interest is in theoretical and empirical analysis of systemic risk of the financial sector—its regulation and its genesis in government-induced distortions. He is a research associate of the National Bureau of Economic Research (NBER) in corporate finance, a research affiliate at the Center for Economic Policy Research (CEPR) and Research Associate of the European Corporate Governance Institute (ECGI). Dr Acharya is the recipient of several awards, including the inaugural Banque de France–Toulouse School of Economics Junior Prize in Monetary Economics and Finance in 2011 and the 2017 Alexandre Lamfalussy Senior Research Fellowship of the Bank for International Settlements. He completed his Bachelor of Technology in Computer Science and Engineering from the Indian Institute of Technology Bombay, Mumbai, in 1995 and his PhD in Finance from NYU Stern in 2001. Prior to joining NYU Stern, he was at London Business School (2001–2008), the Academic Director of the Coller Institute of Private Equity at LBS (2007–2009) and a Houblon-Norman Senior Research Fellow at the Bank of England (Summer 2008). At NYU Stern, he co-edited the books Restoring Financial Stability: How to Repair a Failed System (March 2009), Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance (November 2010) and Dodd-Frank: One Year On (released on voxeu.org, July 2011). He is also the co-author of the book Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance (March 2011).
| SKU | Unavailable |
| ISBN 13 | 9789353884895 |
| ISBN 10 | 9353884896 |
| Title | Quest for Restoring Financial Stability in India |
| Author | Viral Acharya |
| Condition | Unavailable |
| Binding Type | Hardback |
| Publisher | SAGE Publications India Pvt Ltd |
| Year published | 2020-07-24 |
| Number of pages | 396 |
| Cover note | Book picture is for illustrative purposes only, actual binding, cover or edition may vary. |
| Note | Unavailable |