1. Introduction - cdedse.org.pdfVIP

1. Introduction Policy Reforms and the Rate of Interest : The objective of this study is to examine the role of domestic and external factors in the determination of short term interest rates in India in the period following economic reforms. The period under study is March 1993 to May 2000. Steps to liberalize interest rates started in the late 1980s. Certificates of deposits were introduced in June 1989 and commercial paper in January 1990. However, the reforms did not gain momentum until mid-