Professor Cecchetti first succinctly brings out the convergence of developments regarding application of monetary theory to the practice of central banking and second, poses three challenges to both academics and practitioners. I will make some general observations on the convergence issue and later comment upon the challenges. Of course, I shall draw upon India’s experience as appropriate.
Looking at indicators of labour markets and economic activity, it is clear that even though the economy has started to slow, it remains in excess demand. Job vacancies have declined from their peak but remain high, and businesses continue to report  2/3  BIS - Central bankers' speeches  widespread labour shortages.