V K Sharma: Identifying systemic risk in global markets – lessons learned from the crisis Address by Mr V K Sharma, Executive Director of the Reserve Bank of India, at the 2nd Pan Asian Regulatory Summit – Identifying Systemic Risk in Global Markets Lessons learned from the crisis: Asian regulators’ views on what have they done to contain the building up of systemic risk and to prevent the recurrence of future crisis – organised by Thomson Reuters, Singapore, 28–29 September, 2011.
In this case, the framework would call for a setting of interest rates which would, over time, allow inflation to go back up to the target. Once it is clear that such a setting had done its job, the framework calls for it to be replaced by one more likely to keep inflation at the target.