a clear definition of these two terms as a starting point. surprisingly, however, definitions are often missing when these terms are referenced in the contemporary press and academic work. for some, robustness and resilience even appear to have become quasisynonyms, despite the fact that – as i am going to argue – their precise meaning is quite different. being a central banker, i will always argue for using exact language to avoid misunderstandings when talking about our policies and how we wish to reform them : as you certainly know, and as session 3 tomorrow afternoon will again emphasize, when it comes to monetary policy communication, a few words can make a huge difference for markets and the general public. with this in mind, how are robustness and resilience defined? robustness is understood as the ability to withstand shocks or changing conditions as they happen, all while remaining fully functional ( jen, 2003 ; bankes, 2010 ; mens et al., 2011 ). hence, robustness clearly differs from stability, as the latter concept refers to the ability to maintain one ’ s current actual state, rather than maintaining functionality. in other words, i would call a policy robust if it continues to work well in the presence of shocks or under different conditions. more casually, one could also say a robust policy is an externally valid policy. to give you a concrete example, one could argue that conventional monetary policy did not prove robust to changing conditions. both the effective lower bound on nominal interest rates in advanced economies and temporary impairments to the transmission mechanism in the euro area significantly reduced the ability of conventional monetary policy to achieve its price stability goal during the last decade. note that a robust policy can be very different from a resilient policy. deriving from the latin verb resilire, which means to bounce ( back ) or rebound, resilience may be defined as one ’ s ability to return to a stable equilibrium after a shock has caused dislocation ( davoudi et al., 2012 ; alexander, 2013 ; bond et al., 2014 ). for this reason, i think of resilient policies as policies that safely guide the system for which they were designed back to its pre - shock equilibrium. from this perspective, the last decade does not only suggest that conventional monetary policy was not always robust – it was not fully resilient either. in the face of the binding effective lower bound, conventional monetary policy alone would have likely proved incapable of steering the euro

michael debabrata patra : india's financial sector - from exuberance to resilience speech by dr michael debabrata patra, deputy governor of the reserve bank of india, at the 16th seacen - bis high level seminar, hosted by the national bank of cambodia at seim reap, cambodia, 21 september 2023. * * * good afternoon and namaskar. thank you alfred for those insightful opening remarks. i must mention that alfred led the imf's article iv india mission for the 2021 consultations. the sheer weight of that experience and deep understanding of indian conditions is reflected in his views. i would also like to commend alfred and his co - editors for a comprehensive evaluation of india's financial system and very valuable recommendations on the way forward in a recent book evocatively titled " india's financial system : building the foundation for strong and sustainable growth ". i am glad to see mr thomas helbling from the asia and pacific department of the imf in this session, and i look forward to hearing from him. i thank our host and seacen exco chair, the national bank of cambodia, the seacen centre and dr. mangal goswami, executive director, and the bis for inviting me to speak in this distinguished forum. in particular, i am grateful to deputy governor sum sannisith for so graciously writing to me to participate in this 16th seacen - bis high level seminar. the backdrop it is widely believed that during the next two decades – if not for longer – the centre of gravity of the global economy will shift eastwards to asia. the imf's regional economic outlook for asia and the pacific indicates that this region will contribute about two - thirds of global growth in 2023 itself. india will account for a sixth of world output growth in 2023 and 2024. in terms of market exchange rates, india is the fifth largest economy of the world and the third largest economy on the basis of purchasing power parity. our assessment is that by 2027, india will be a us $ 5 trillion economy and the third largest in the world even by market exchange rates. a key driver in this transformation is likely to be the window of a demographic dividend that opened up in 2018 and will probably last till the 2040s, going by fertility and mortality rates. already, we are the most populous country in the world at 1. 4 billion and the youngest