OF FINANCE AND DEVELOPMENT - NEGLECTED AND UNSETTLED QUESTIONS

The article analyzes some of the neglected and still unsettled issues on the interrelationship of finance and development and in the subdiscipline of finance; notably, the implications of the dichotomy of formal and informal finance; the modalities and sequencing of financial reform; the challenge of maintaining competition in oligopolistic systems; the scope for market-related monetary policy instruments; the case for autonomy of central banks and divestiture of their developmental role and revamping of their prudential functions. It argues for a sharply focused, country-specific, issues-oriented research agenda.