Secondly, however, in the long run the positive externalities of integrated financial markets outweigh the costs of switching from one institutional arrangement to another, so collective or public action may be necessary to achieve more efficient outcomes. Moreover, frequently collective action is crisis-driven – which reflects a somewhat pathological learning on the part of market participants.
Shaktikanta Das: Speech at Annual Statistics Day Conference Speech by Mr Shaktikanta Das, Governor of the Reserve Bank of India, on the occasion of the Annual Statistics Day Conference, Mumbai, 28 June 2019.