Reddy who, during his term in office, earned a formidable reputation as a zealous guardian of financial stability. I struggled to determine what I should say in this inaugural address. One option would be to attempt a comprehensive overview of all the issues that might come up in the subject sessions.
As seen in the subprime mortgage problem, against the background of rising home prices, households' borrowing against homes as collateral increased substantially, which in turn led to excessive consumption. Policy responses amid balance-sheet adjustments Next, I would like to look at differences in the policy responses in Japan and the United States.