I thank ICRIER and InWEnt for giving me this opportunity to speak with you this morning. In my talk, I will try to address the following set of questions: How and why was India impacted by the global financial crisis? How did monetary policy respond to the crisis? What was the impact of the policy on the Reserve Bank’s balance sheet?
How did monetary transmission work? I will conclude by highlighting the challenges of exit from monetary easing. 2. The subprime crisis that emerged in the US housing mortgage market in 2007 snowballed into a global financial crisis, and a global economic recession followed. The financial landscape has changed significantly after the collapse of Lehman Brothers in September 2008.