The overall stability that has been imparted to a system undergoing reforms has served us well so far in the face of the recent financial developments. To exemplify the argument, I thought I would spend some time on the recent financial developments, possible causes and likely consequences so as to better appreciate the conduct of India’s financial sector reforms. IV.
Recent international financial developers: issues in monetary policy and financial sector regulation  In contrast to earlier crises, the cause-and-effect sequences are blurred in the current turmoil in view of the extreme information asymmetry.