For example, institutional weaknesses, structural fragilities and excessive risk-taking contributed to a negative feedback loop between sovereigns and banks in some countries, which significantly impaired monetary policy transmission. The resultant contraction in the euro area economy threatened price stability, our primary objective. Overcoming this vicious circle required considerable effort. The pattern is now running in reverse, with positive spillovers from all countries.
I thank Professor Murthy for inviting me to share my thoughts with a young audience in an institution which has a formidable reputation in agricultural research as having pioneered the “Green Revolution”. In my talk today, I propose to briefly outline the economic and financial structure of the State as well as highlight various financial inclusion initiatives taken by the Reserve Bank.