Capital accumulation and investment requirement for development; Sources of capital formation:
domestic and international; Domestic financing of development: inflationary finance and noninflationary
finance; Financial markets and institutions: money and the payment system, credit and
the financial system, central bank, commercial banks and recent developments, unregulated credit
markets; External financing of development: necessity for external financing, public financial aid:
bilateral and multilateral; External debt and its implications, private foreign investment � benefits and
costs, Foreign Institutional Investors, Foreign Direct Investments, multinational corporations; Foreign
aid: the development assistance debate.
Texts/ References:
1. G. M. Meier and J. E. Rauch, Leading Issues in Economic Development, 8th Ed., OUP, 2004.
2. L. M. Bhole, Financial Institutions and Markets, Structure, Growth and Innovations, 3rd Ed., Tata-
McGraw Hill Publishing Co. Ltd., 2001.
3. S. B. Gupta, Monetary Economics, Institutions, Theory and Policy, S. Chand and Co. Ltd, 1997.
4. S. Ghatak, Introduction to Development Economics, 4th Ed., Routledge, 2007.
