This volume analyses the diverse and often unexpected financial developments during the last 15 years of the post-reforms period. The essays provide an overview of the challenges faced by monetary and fiscal authorities under the rapidly changing domestic and international economic environment. With a focus on fiscal imbalances; monetary-cum-exchange rate policies, and management of cross-border capital flows, the volume deals with a wide-range of issues: The transition from a period of credit rationing to a situation of demand constraint in the loan market Fiscal problems with reference to the rising revenue and fiscal deficits such as debt financing, food subsidy and stock-piling of foodgrains, and fiscal correction measures. External sector developments and their inter-relationship with other sectors of the macroeconomy. The contribution of the banking sector towards economic growth and containment of financial volatility. The volume provides a fruitful analysis of these problems through the identification of inter-sectoral linkages in terms of a coherent macro-theoretic framework.