After the 2008 crisis, most central banks prepared SOPs for managing financial crises in accordance with BIS guidelines In September 2008, when the global economy was thrown into a vicious financial crisis, India’s central bank went all out to protect its economy.
Duvvuri Subbarao, who was Governor of Reserve Bank of India (RBI) at that time believes that the current crisis triggered by Covid-19 outbreak is complicated and policy measures should be tailored accordingly rather than being a copy of those taken during the financial crisis.
Excerpts: First off, what do you think of the Finance Minister’s Relief Package announced a short while ago? I’ve barely had time to absorb the details of the package.