Global financial crisis: How India can look ahead by looking back

Former RBI Deputy Governor H R Khan looks back at the global financial crisis, along with the time before and after it, and lists seven lessons that we learnt from the global meltdown of 2008

In March 2007, I accompanied Axle Weber then President of Duetsche Bundesbank to the University of Pune where he delivered a lecture on challenges of financial globalisation. What struck me most was his deep concern at the pronounced feeling of complacency among the market participants despite ongoing signs of low risk premia and increasing use of leveraged instruments , in part aided by  ultra loose monetary policy of the major central banks then . Eighteen months later catastrophe struck in September 2008 when Lehman collapsed leading to a full blown Global Financial Crisis (GFC). 

Ten years is a good time to