time filling jobs. i was told one ethanol plant needed to fill 15 jobs and got four applicants. in contrast, indicators of labor demand, such as unfilled job openings, remain exceptionally strong. on balance, i anticipate that employment will continue to move up in the months ahead, although for several reasons that are unrelated to the stance of monetary policy, i don ’ t expect that we will see employment fully return to prepandemic levels any time soon. first, despite all of the economic progress, it is clear that switching off economic activity for such a long period has had lasting consequences, and expectations of a smooth resumption of production, transportation, and business operations may not be met for some time. many workers that were initially laid off temporarily have left the workforce altogether, which is especially true for women, with nearly 2 million women leaving the workforce since the pandemic began. in addition, many older workers dislocated by the pandemic effectively retired and probably will not rejoin the workforce even in a much stronger job market. while i would not want to place too much weight on one or two months of data, the most recent reports on employment and anecdotal reports from a wide range of businesses suggest that, even when offering higher wages and signing bonuses, many employers are finding it difficult to fill open positions. history tells us that the longer workers remain out of the workforce, the less likely it is that they will return to employment and the greater the likelihood that they will lose skills and connections with the job market, which could weigh on labor force participation for years to come. the federal reserve ’ s policy tools are useful for promoting a strong job market, but they are not well suited to addressing these harmful effects on labor supply. another reason for my cautious outlook for employment growth is that, while large firms have adequate resources, funding options, and flexibility to withstand pandemic - related disruptions, many small businesses without those advantages have closed permanently. i continue to hear concern about the future from small business owners, which is also reflected in the latest readings from broader surveys of small business sentiment. while many factors lead to this perspective, i have heard specific reference to continued rising costs, supply chain issues, labor 3 / 6 bis central bankers'speeches shortages, and uncertainty about other factors, like tax increases and vaccine mandates. let me turn now to our other monetary policy goal, price stability. earlier this year, as the economy was reopen

y v reddy : management of the capital account in india – some perspectives inaugural address by dr y v reddy, governor of the reserve bank of india, at the annual conference of the indian econometric society, hyderabad, 3 january 2008. * * * guest of honour respected professor c. r. rao, vice chancellor dr. hasnain, president professor radhakrishna, emeritus professor dr. bhalla and distinguished participants, i am honoured by the kind invitation to deliver the inaugural address of the annual conference of indian econometric society. it is a pleasure to be meeting friends in the profession, more so in my home town, hyderabad. i have little to add to the themes covered in the papers. i thought that it may be of interest to participants if i present before you some perspectives on a subject that has recently gained prominence in policy circles and also academia, namely management of the capital account in india. i. background i would like to recall that in the invited lecture ( on parameters of monetary policy in india ) at your annual conference in chennai, in january 2002, i made a brief reference to the issue when i said : " while the twin objectives of monetary policy of maintaining price stability and ensuring availability of adequate credit to productive sectors of economy have remained, capital flows and liberalisation of financial markets have increased the potential risks of institutions – thus bringing the issue of financial stability to the fore ". you will recall that we had introduced two innovative measures, namely, the liquidity adjustment facility ( laf ) and the market stabilisation scheme ( mss ), to manage the challenges of monetary policy in the context of large and volatile capital flows, to assure macro - stability and, in particular, financial stability. while releasing the india development report of the indira gandhi institute of development research and speaking on the “ indian economy – current status and select issues ”, ( january 2005 ) i had mentioned " the possible issues that need to be considered if one were to achieve a better management of non - debt components of capital flows that will address emerging concerns. " at the current juncture, there are several compelling circumstances, both global and domestic, that demand a revisiting of the issues, that we discussed earlier, and an elaboration of the emerging concerns in the current context. ii. global context let me first briefly refer to the global context. there are unprecedented developments in global financial markets. there are pressures in money and credit - markets which are sought to be addressed through coordinated