The crisis which started off as a localized sub-prime crisis has morphed into a financial crisis leading to a full blown global economic crisis and has now taken the shape of a sovereign debt crisis. While its current spread is localized in Eurozone, its impact continues to be felt all across the globe.
It is in this context that I would place my talk today on the changing contours of crisis and its impact on the Indian economy. I. Calm before the storm – a period of great moderation  The period preceding the Global Crisis was a phase of Great Moderation representing the decline in macroeconomic volatility (both output as well as inflation).