It is worth noting that during late the 1980s, call/notice market was virtually the only segment in Indian money market. Today, we have a variety of new instruments e.g., CD, CP, Treasury bills, repo and CBLO catering to the varied needs of market participants. What has been the genesis of the CP market in market in India? How far has it come about?
I support all efforts which are focused on a better capturing of financial structural changes in macroeconomic models. Some commentators are rightly pointing to the fact that textbooks and models are lagging behind reality. But it appears that the distance has become too large. Moreover, in further developing macro-stress tests we currently need to incorporate these financial changes.