The just-released book SYSTEMIC RISK ANDMACROPRUDENTIAL REGULATIONS: Global Financial Crisis and Thereafter 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 for that crisis, this book adds a new dimension on “how to reduce the severity of such crises in the future.” 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 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 along with macroprudential tools, in fact, could be the best possible solution to handle brewing points of crises.
It also finds the solution in the effective international coordination of monetary and financial stability policies for the global spill-over of policy actions initiated at the various end in the globe. While it recognises the contribution of the current arrangements in this regard, it recommends a “bottoms-up” a framework which should give better results to tackle the menace of potential financial crises.
This book is published by SAGE Publications with a 'Foreword' written by 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 useful reading for (a) Students, Teachers, Researchers, and Consultants in the areas of Economics & Finance (b) Professionals working in the Financial Sector & Central Banks.
The Author of the Book is Dr. Rabi N. Mishra, Executive Director, Reserve Bank of India, Mumbai and the title is now available at Amazon (both Hardback and Kindle) and Flipkart.