If we learn the lessons of experience, we will not repeat the same mistakes. This indeed is the topic for my oration, and my tribute to late President Narayanan – to seek the lessons of the crisis that we have just gone through so that we can make this a better world of all of us. Is this time different?
By all accounts the 2008/09 crisis has been the deepest financial crisis of our times. It has taken a devastating toll on global output and welfare. Arguably, the fundamental causes of all financial crises are the same – global imbalances, loose monetary policy and high levels of leverage driven by “irrational exuberance”. In that respect this crisis has been no different.