Issues and Challenges of Convertibility

Contents: Preface. 1. Convertibility and its genesis. 2. Is full convertibility possible in India? 3. Emerging issues of currency sovereignty and policy independency. 4. Capital movements in some countries. 5. Impact of convertibility in semi-industrialised economies. 6. Convertibility and reforms. 7. Indian story of convertibility. 8. Liberalising capital account. Bibliography.

"Convertibility is the best tool in the hands of monetary authority of a country to adjust monetary disequilibrium. Monetary disequilibrium arises due to heavy down payment of one country\'s currency. In the international arena, one country\'s currency is adjusted interms of another country\'s currency, so as to make international trade in a larger quantity. Many financial crises have been settled with the help of convertibility.

Most industrialized economics like Brazil, Mexico and other Latin American countries experienced with the full convertibility technique. India is also trying to follow full convertibility but the results are only lesser than the expectation. This book made an attempt to bring out all the possible avenues of monetary equilibrium." (jacket)