While this process has provided important opportunities, it has also brought in new challenges and risks, necessitating fine-tuning of macro policies in a much broader canvass and context. India is, thus, moving from a focus on managing external sector to implementing an optimal integration of domestic and external sectors, with the global economy. Thank you. 6  BIS Review 49/2005
Although the financial accelerator seems intuitive – certainly financial and credit conditions tend to be procyclical – nailing down this mechanism empirically has not proven entirely straightforward.