Many of the recommendations in the Working Group’s report on OTC derivatives would remove unnecessary legal and regulatory barriers to such innovations. 1  BIS Review 17/2000  A challenge that policymakers always face in such times is to let markets evolve naturally and to refrain from attempting to dictate changes. The recommendations in the Working Group’s report reflect this evolutionary philosophy.
Second, there will have to be more definite signs of recovery. The Reserve Bank will maintain an accommodative stance until demand conditions improve and credit flow takes hold, but reversing the expansionary policies is definitely on the agenda on the way forward. Having explained the Indian context in some detail, let me now return to the global scene.