## Emerging Economies and Global Financial Safety: Insights from India

_IMF Blog, May 16, 2016_

## Source details

**Canonical URL:** [Emerging Economies and Global Financial Safety: Insights from India](https://www.imf.org/en/blogs/articles/2016/05/16/emerging-economies-and-global-financial-safety-insights-from-india)

## Other formats

- [Markdown version](/en/blogs/articles/2016/05/16/emerging-economies-and-global-financial-safety-insights-from-india/index.md)
- [Structured JSON version](/en/blogs/articles/2016/05/16/emerging-economies-and-global-financial-safety-insights-from-india/index.json)
- [Bundle manifest](/en/blogs/articles/2016/05/16/emerging-economies-and-global-financial-safety-insights-from-india/bundle-manifest.json)

## Bibliographic details
- Authors: iMFdirect
- Published: May 16, 2016

---

### Context and publication
- iMFdirect
- May 16, 2016
- Raghuram Rajan is charged with monetary stability in one of the world’s leading emerging economies as Governor of the Reserve Bank of India.

### Sudden stops — risks and preparedness
- Sudden stops or withdrawals of money out of a country can trigger dramatic overnight changes in a country's economic and financial fortunes, whether triggered from without or within.
- To prepare for sudden stops or withdrawals of money out of a country, Rajan says you can build reserves, so if money flows out you have enough to protect the value of your currency, or protect you from a bank run.
- If people think you have enough reserves they may not head for exit.

### Policy perceptions and innovation
- People are more influenced by innovations in advanced economy policies, and more likely to believe they are appropriate.
- Policy innovations from emerging economies are more attributed to the crankiness of the governor or the government, rather than based on a well thought-out policy given the current economic environment.

### Multimedia
- Listen to this podcast interview with the policymaker as he discusses why countries need a global financial safety net in an era of potential dramatic overnight changes in a country's economic and financial fortunes, whether triggered from without or within.
- You can listen to the provocative podcast here:

*Source: Emerging Economies and Global Financial Safety: Insights from India (iMFdirect), May 16, 2016.*

---


## References

- [podcast](http://www.imf.org/external/pubs/ft/survey/so/podcast.aspx)

_Source: https://www.imf.org/en/blogs/articles/2016/05/16/emerging-economies-and-global-financial-safety-insights-from-india_