Looking ahead, one of the big challenges for the Reserve Bank will be to learn to manage both economic and regulatory policies in a globalizing world. Dr. Jalan, as the Governor, showed extraordinary competence and leadership in insulating India from the impact of the Asian crisis in the mid-1990s.
Dr. Reddy had the courage of conviction to remove the metaphoric punch bowl before the party got wild. 18. Yet the global financial crisis was so virulent that it affected virtually every country in the world. Did the Reserve Bank learn from the sagacity of Dr. Jalan and the wisdom of Dr. Reddy to manage the current crisis?