laws become more draconian to give creditors powers laws applied more quickly to small firms, sometimes with a bias to creditors. operational and speedy bankruptcy code will level the playing field. • issues of excessive market power and predation. o o • o o o d ) need to ensure awards survive appeals the jobs agenda : job is the best form of inclusion. growing small firms as job creation protection of property rights o c ) competition commission showing its mettle why greater concern now on issues of competition and entry? o b ) negotiating in the shadow of bankruptcy private property protection needed to incentivize activity : i eat what i kill. broadly protected in india is it too well protected – land for infrastructure moderate and predictable taxes and estate duties – government has delivered. administrative steps to rein in unnecessary tax demands automation of significant parts of the tax process retrospective taxation : clear government statement. however, base erosion and profit shifting – worldwide issue that large corporations need to answer – equal requirement of transparency on corporate side : need for global agreements. broadening access to capabilities o aam aadmi attaches no value to free enterprise if he cannot participate. o increasingly, enterprises of the future require employees to have decent education and health. o malnutrition curses an individual for life, as does poor early education. o effective delivery of social programs so that everyone has the ability to compete is absolutely necessary. o capitalism starts at age 21! a basic safety net o competition can be ruinous despite one ’ s best efforts. bis central bankers ’ speeches o need a basic safety net, not focused on firms but on individuals : o o unemployment insurance, basic healthcare, old age pensions should not be prohibitively costly for government. cost entitlements and incorporate into budget liability projections charge reasonable premiums for the insurance recognize that if insurance is not explicit, it will be implicit in a democratic society. safety net can also encourage people to take risks they would shy away from otherwise. in conclusion o india has come a long way in encouraging free enterprise. o from tiny shops to large internet start - ups, the spirit of entrepreneurship is alive. o graduates increasingly want to start businesses or work for start - ups rather than go to an established consultancy or bank. o doing business is more reputable, as is getting rich. o but a lot more work is needed to improve the environment so that everyone has a chance. rather than looking for special dispensations, business has to push for improving the business

a short reference to the new role of central banks in macroprudential supervision. let me first say a few words to explain how the crisis has affected the macroeconomic and financial environment in which banks operate. ii. towards a new economic and financial paradigm : the “ new normal ” in the aftermath of the crisis, it is very likely that many fundamental elements of our economies and financial systems work differently than in the past in a number of aspects, reflecting processes of adjustment in the behaviour of agents and policy - related reforms that are currently under way. more generally, empirical evidence shows that systemic banking bis central bankers ’ speeches crises typically affect the structure and dynamics of economic systems over very protracted periods. 1 before venturing into the future, let me recall the main elements of the pre - crisis economic and financial paradigm, i. e. the “ old normal ”. reduced macroeconomic volatility. prior to the deterioration of the crisis in october 2008, our economies experienced two decades of significantly reduced macroeconomic volatility. a number of empirical studies documented a significant decline in the variability of both economic growth and inflation in almost all major industrialised economies. most of the debate among monetary economists focused at the time on the predominant source of “ the great moderation ” among three main candidates : ( 1 ) better macroeconomic policies, ( 2 ) structural changes in the economies, and ( 3 ) less disruptive distributions of shocks ( “ good luck ” ). while the alternative explanations could in theory have different implications for the sustainability of the decline in macroeconomic volatility, in general few doubts were expressed about the steadiness of this new state of the world : the “ great moderation ” was here to stay. sustained economic growth. the decline in macroeconomic volatility was also accompanied by a significant improvement in economic performance as agents were able to extract the dividends of sustained price stability and reduced uncertainty about macroeconomic activity. potential growth in most developed economies rose, enabling their citizens to benefit from protracted periods of economic expansion, only infrequently interrupted by relatively moderate recessions. strong dynamics of house prices. sustained economic growth, supported by low and stable interest rates, contributed to improving expectations about asset prices, particularly about house prices. optimistic expectations about housing markets at a time of : ( a ) increasing deregulation and liberalisation of the banking and financial sectors, ( b ) fast financial innovation, and ( c ) progressive globalisation of financial markets, led