It is important to recognize that these developments would not have been possible without complementary advances in technology across several disciplines. First, innovations in finance theory, such as the principle of financial arbitrage and models for pricing contingent claims, provided a conceptual framework for understanding and modeling financial risks.
Critical issues relating to global geo-political developments and idiosyncratic socio-political challenges being faced by many advanced economies would have a spill-over impact on the economic outlook and have to be kept in view. Of course, this would require separate discussions. Impact on India 9. Let me now briefly discuss about India’s positioning vis-à-vis its peers in the EMDE space at the current juncture.