I would then close by offering my perspectives on the way ahead for limiting the unintended consequences of the new regulatory framework. But before I get to the subject proper, let me spend a couple of minutes in underlining the contrasting realties that the advanced and the emerging economies like India are faced with, in an otherwise “interconnected” world. 2.
The meltdown of the US sub-prime mortgage market is of course having a great impact on international financial markets. However, in contrast to the case during the Asian currency crisis of the late 1990s, there are now no nations experiencing severe difficulties. This is one example of how the financial systems of almost all countries have been further strengthened.