My presentation will initially provide a broad overview of the global developments and then move on to briefly list the aspects of market and regulatory failures which characterised the recent developments. I will then lay down the broad contours of the financial sector policies in India, with the details of a few specific initiatives relevant to financial stability.
For this to happen, the current trends need to be supported by a combination of more restrictive fiscal policy in the United States, greater exchange rate flexibility in the Asian economies, and structural reform in Europe. 2. International financial conditions On the international financial markets real interest rates and the volatility of financial assets are low.