*  *  *  Honourable Professor Joseph Stiglitz, Governor Dr. Subbarao, distinguished guests and colleagues from the Reserve Bank. Central banks have come under severe intellectual scrutiny ever since the global crisis, even as they have crossed all conventional barriers in responding to the crisis.
Some argue that economic stability can set the stage for financial instability by breeding complacency about risk. Perhaps, but surely the benefits of macroeconomic stability far outweigh its possible costs. Another principle is that a healthy banking system works hand-in-hand with a healthy economy to substantially mitigate the consequences of financial crisis.