Mumbai: Noted Economist and RBI Executive Director Dr Rabi N. Mishra’s new Book on “SYSTEMIC RISK AND MACROPRUDENTIAL REGULATIONS – Global Financial Crisis and Thereafter” which adds to the story of the last financial crisis of 2008-09 that threw the globe into the gutter of gloom. Learning from the reasons of that crisis, this book adds the new dimension on “how to reduce the severity of future such crises.” It starts with the various financial regulatory reforms undertaken by the G-20 and Financial Stability Board (FSB) in this direction and spells out an Early Warning Mechanism and a Crisis Management Framework which every financial institution should love to put in place. With the help of a forward-looking stress testing programme, the supervisory interventions should be intensive, while regulations aligned to requirements.
The Book identifies Systemic Risk as the new villain and finds macroprudential policies as the best bet to address them. A sweet blend of use of monetary policy alongwith macroprudential tools in fact could be the best possible solution to handle brewing points of crises.
The Book finds the solution in an effective international co-ordination of monetary and financial stability policies for the global spill-over of policy actions initiated at various end in the globe. While it recognises the contribution of the current arrangements in this regard, it recommends a “bottoms-Up” framework which should give better results to tackle the menace of potential financial crises.
The is published by SAGE Publications with a ‘Foreword’ from Professor Benjamin Friedman of Economics Department, Harvard University. ‘Advance Praise’ for the book has been showered by Professors/Economists – Charles A.E. Goodhart, Michael D. Bordo, Phillip Turner, C. Gopinath, Jeffrey C. Furher, Sheri Markose, Sanjay Kollapur, Shawn Cole, Eswar Prasad and Claudio Borio AND former RBI Governors – C. Rangarajan, Y.V. Reddy and D. Subbarao.
The Book will be a useful reading for (a) Students, Teachers, Researchers and Consultants in the areas of Economics & Finance (b) Professionals working in Financial Sector & Central Banks.
The Author of the Book is Dr Rabi N. Mishra, Executive Director, Reserve Bank of India, Mumbai and is available at Amazon, Flipcart and Kindle.