Rakesh Mohan: Avian influenza pandemic – preparedness within the financial sector Introductory remarks by Dr Rakesh Mohan, Deputy Governor of the Reserve Bank of India, at the IMF seminar on “Preparedness within the Financial Sector for an Avian Influenza Pandemic”, Mumbai, 24 July 2006. The assistance of Rajiv Ranjan and Rajeev Jain is gratefully acknowledged.
It also risks exacerbating the very pressures these short-run tools seek to manage. By thwarting adjustment, they can cause pressures to build up, leading to greater volatility. Finding balance means allowing countries to respond to excess volatility or disruptions in the short run while making the system flexible enough to adjust in the long run.