Comments on Safeguarding Financial Stability in an Era of Financial Fragility:An Indian Prospective by Prof. D M Nachane

I consider this my honour to discuss this excellent paper by eminent economist and scholar Professor Dilip Nachane. I thank Prof. Vikas Chitre and the Indian School of Political Economy for this opportunity.

The paper has a wide canvass, and covers a number of complex issues. To be more specific: First, it dwells on the new paradigm for monetary policy that evolved in the run-up to the Great Moderation (from 1982 to 2007) and how it was negated during the crisis. In this context, it draws significantly from the reports of the Larosiere Group [February, 2009] and the Working Group of G20 [March, 2009].