To preserve financial stability, central banks and other policymakers need to protect and improve the resilience of the financial system. This involves identifying, monitoring, and taking policy actions to mitigate systemic risk. I train officers in the Reserve Bank of India on broad central banking functions, including financial stability policy. To perform my present and future roles effectively, it’s essential to understand the nuances of both systemic risk and macroprudential tools.
At Yale SOM, I’m building on my skill set, while also gaining a broader and more international perspective in the field of financial stability policy. Central banking is often viewed as an esoteric subject, but one that has tremendous influence on people’s lives.
Yale SOM, in conceptualizing and implementing a first-of-its-kind program on systemic risk, is doing a great service to macroeconomic policymakers around the world. Financial policy research is still in its infancy, and this program leverages the deep and varied expertise of Yale faculty who have done pioneering work in financial crises and central banking.
As students, we gain not only perspectives on how different countries are trying to improve their capabilities in the measurement and management of systemic risk, but also the related challenges in public policy making. We get insights into research and policy initiatives across the globe. To an emerging country central banker, these inputs are vital.
The systemic risk class is a small group of students, and the coronavirus pandemic fundamentally changed the experience this year. A few of my classmates and I had to attend fall semester from remote locations in Malaysia, Indonesia, and India, with significant time-zone differences.
But this didn’t limit our ability to learn from each other. Each one of us brings a unique perspective on a financial stability issue, and students from different disciplines also attend some of our classes, which adds to the diversity of views and opinions. My class has formed strong bonds that will stay with us even after the program. As we widen our networks, we can go on learning from each other. It’s a privilege to be part of this unique group.