Optimal financial and foreign exchange liberalization of less developed economies: Basant K. Kapur in quarterly journal of economics, Vol. XCVIII, February, 1983.

Abstract

The paper focused on a highly-inflationary less-developed economy that is in dire need of an optimal mix of domestic financial instruments and appropriate levels of external sector variables to achieve balanced growth. Essentially, the analysis in the paper dwelt extensively on optimal combination of policy instruments to achieve both internal and external balance while ensuring non-inflationary growth in the context of financial and foreign exchange liberalisation