Awareness Fridays: Easy Reading — Mitigating Spillovers and Contagion Lessons from the Global Financial Crisis

by Vinaya HS on December 12, 2008

in Finance

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Today’s topic is an easy to understand and informative read for the weekend. It’s a speech delivered by Dr. D. Subbarao, Governor, Reserve Bank of India at the RBI-BIS Seminar on “Mitigating Spillovers and Contagion – Lessons from the Global Financial Crisis” (click to download) at Hyderabad earlier this month.

Of significance is this quote (a close friend and I had discussed precisely the same point in January of this year):

Forgotten in the euphoria of financial alchemy is the basic tenet that the financial sector has no standing of its own; it derives its strength and resilience from the real economy. It is the real sector that should drive the financial sector, not the other way round.

Financial alchemy. I love the term — a new one for my arsenal! A few examples for financial alchemy that we see on a daily basis include:

What do you think?

Awareness Fridays is an initiative to spread awareness on topics relevant to personal finance — every Friday. I urge you to take some time off and absorb this information — it’s pretty useful. And, as always, do spread the word if you find this useful.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 1 comment… read it below or add one }

Girish December 15, 2008 at 9:40 PM

Informative…
Blogs related to saving for the rainy day would be more usefull.
Regards,
Girish

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