are in long - term decline ( for example, textiles ) from the industries that may have experienced a more recent episode of restructuring. it also allows us to identify those industries that have had upward trends but that have experienced a period of relatively weak job growth in recent years. anecdotally, most of these industries can be associated with elements of restructuring. within the information industry, for example, telecommunications has suffered from overcapacity - and significant downsizings or business failures - since the cyclical peak. similarly, transportation includes the airline industry in which many firms have been under stress, and professional and technical services includes several industries that complement business investment and likely suffered in the wake of the sharp slowing in spending on equipment and software early this decade. within durable goods manufacturing, computers and electronics, primary and fabricated metals, and machinery rank particularly poorly according to our criteria of underperformance, and these industries have also been identified with restructuring in recent years. corroborating this anecdotal evidence, the durable manufacturing, information, and professional and technical services industries are also among the top six contributors to the post - peak increase in the aggregate permanent layoff rate. these underperformers are also at the top of the list of industries that experienced significant rates of job destruction during the labor market downturn of 2001 and 2002. in fact, the four industries that, according to our two criteria, were the key underperformers in recent years more than accounted for the overall increase in the average pace of job destruction between 1998 - 2000 and 2001 - 02. finally, the relationship between our measures of underperformance and industry productivity growth is also informative about the importance of restructuring. typically, productivity falls with employment in recessions, as firms - hesitant to sever ties to workers who will be valuable to them when demand recovers - reduce employment less than output. however, if firms perceive changes in demand to be permanent, the reluctance to reduce employment in proportion to output should diminish. in fact, productivity growth from 2000 to 2002 in the four key underperforming industries was not lower, on average, than in industries not experiencing large reductions in labor demand, supporting the notion that firms in these industries believed demand changes to have been permanent. moreover, labor market underperformance, in general, was associated with slightly greater productivity growth between 2000 and 2002 ; this association suggests that underperforming industries reacted to changes in labor demand by destroying their

possible if and only if the capital account is managed ”. 6 in india, we experienced two episodes of severe stress on our balance of payments emanating from volatile capital flows which were managed with a combination of polity tools. given that the central bank balance sheets in advanced countries are still bloated and the actual taper starting now, considerable uncertainties remain for global financial markets and capital flows to the emes. thank you. rey, helene ( 2013 ), “ dilemma not trilemma : the global financial cycle and monetary policy independence ”, paper presented in 2013 jackson hole economic policy symposium, federal reserve bank of kansas city. bis central bankers ’ speeches