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?
Looking ahead, however, economic activity could be hindered by balance sheet adjustments in the financial sectors of European nations as well as in some governments including that of Greece. Therefore, the pace of economic recovery in Europe is likely to be more moderate than that in the United States. B.