While the latter’s share has grown in all emerging regions, it is still low in Latin America (less than a quarter of the total debt, with a predominance of variable-rate instruments and, to a lesser extent, indexed debt). Additionally, liquidity in secondary debt markets, while growing in the past few years, remains limited and uneven.
The burden of my argument therefore is that with sensitivity and understanding on both sides and through appropriate institutional mechanisms, it is possible to ensure that a central bank is able to effectively discharge its financial stability responsibility without compromising its autonomy. Indian position on the issue of financial stability 26. Where do we in India stand on this issue of financial stability?