So, where and how does the economic dilemma fit into the topic of risk management, which is the subject of this summit? It fits in because the context throws up questions about risk management in the macroeconomy. How does one hedge against the uncertainty of outcomes of toady’s fiscal and monetary policy actions? How does one insure against such risks?
Clearly there are no easy ways; if indeed there were, we would not be having this seminar. I will focus on three aspects: monetary policy, fiscal policy, and financial stability to define the contours of uncertainty. Looking ahead – monetary policy On the monetary policy front, managing the risk calls for maintaining ample liquidity in the system.