risk avoidance, risk mitigation, risk sharing and risk transfer may not be fully effective as the financial and other risks from climate change wouldn't materialise in part or on individual basis but manifest and impact collectively in a region or industry. traditional instruments like insurance alone may not be enough to manage the risks arising from such an all - encompassing crystallisation of risks and can overwhelm the insurers. therefore, we have to acknowledge that risk emanating from climate change cannot be handled by one set of actors alone. it needs a buy in from all stakeholders and to ensure a successful transition to a sustainable future, we need a multi - faceted approach that involves governments, private sector entities, financial institutions, civil society organisations and the public. climate vs growth - concept of'just transition'proposals for tackling climate change and containing global temperature sometimes give rise to contradictory views as pro - climate actions are perceived to compromise on economic growth and employment. however, the need to act is immediate and in a calibrated manner. we cannot afford to procrastinate. the rising temperatures and climate events are already inflicting huge financial costs and causing irreparable damage to ecosystem. if we start early, the cost of transitioning to a more sustainable future would be lower and spread out over a longer time horizon. therefore, i believe that early work on mitigating the climate risk would support the longterm growth. the investments in climate action would pay - off well in the medium and long - term. the important point here is that the short - term impacts should not be disproportionate to some countries in the sense that they should not be worse - off during the transition process. therefore, there is a need for more channelising of climate finance to emdes and firm and abiding commitments on climate funds from advanced economies to help emdes in the transition process is very important. adaptation and transition are key strategies in managing climate risks. however, the transition must be swift, equitable and just, without putting undue burden on developing and underdeveloped economies. we also need to address the elephant in the room which is how to finance the transition towards a low carbon economy. given the 3 / 6 bis - central bankers'speeches significant funding gaps and huge financing requirements of emdes ( estimates range from 2. 5 per cent of gdp annually in case of india and at $ 2 trillion per year by 2030 for em

deepak mohanty : implementation of monetary policy in india speech by mr deepak mohanty, executive director of the reserve bank of india, at the bankers club, bhubaneswar, 15 march 2010. * * * the assistance provided by shri bhupal singh and shri binod b. bhoi is acknowledged. i thank the bankers club, bhubaneswar for providing me this opportunity to speak to you this evening. how does the reserve bank of india implement monetary policy? this is the question i would like to address. but before doing that i will briefly touch upon the objectives and framework of monetary policy, as they have evolved, to set the context for discussion on operational aspects of monetary policy. i will conclude with a discussion on the process of monetary policy formulation and communication. objectives and framework in india, the objectives of monetary policy evolved as maintaining price stability and ensuring adequate flow of credit to the productive sectors of the economy. with progressive liberalisation and increasing globalisation of the economy, maintaining orderly conditions in the financial markets emerged as an additional policy objective. thus, monetary policy in india endeavours to maintain a judicious balance between price stability, economic growth and financial stability. the monetary policy framework in india from the mid - 1980s till 1997 – 98 can be characterized as a monetary targeting framework on the lines recommended by chakravarty committee ( 1985 ). because of the reasonable stability of the money demand function, the annual growth in broad money ( m3 ) was used as an intermediate target of monetary policy to achieve the final objectives. monetary management involved working out m3 growth consistent with projected gdp growth and a tolerable level of inflation. in practice, however, the monetary targeting approach was used in a flexible manner with “ feedback ” from the developments in the real sector. for example, if the real gdp growth was expected to be higher, m3 projection was revised upwards. in the 1990s, the increasing market orientation of the financial system and greater capital inflows imparted instability to the money demand function. consequently, there was a shift to multiple indicators approach in the late 1990s. under this approach, interest rates or rates of return in different markets along with movements in currency, credit, fiscal position, trade, capital flows, inflation rate, exchange rate, refinancing and transactions in foreign exchange – available on a high frequency basis – are juxtaposed with output data for drawing policy perspectives. the multiple indicators approach continued to evolve and was