I have tried to give you the Reserve Bank perspective on these. The message I tried to convey is that there are no template answers to real life policy issues. Analysis is important, but judgement is crucial. I believe a two way communication between central practitioners and central bank scholars will help in sharpening both our analysis and judgement. 8
During 2009–2011, the capacity of the public authorities was stretched to the limit in sourcing the liquidity and the capital needed for the basic functioning of the system. While the rest of the public finances also needed urgent adjustment, it was this additional pressure that tipped the country into the need for official assistance in the EU-IMF Programme.