Beyond the headline-grabbing issues, the Indian economy is struggling to solve a critical problem: how to restore and maintain financial stability on a durable basis. In his book Quest for Restoring Financial Stability in India, Dr Viral Acharya addresses the crucial issue of financial stability and offers a plan for sustained improvement. Dr Acharya shares a plan to address the recapitalisation needs of public sector banks, offering solutions on how to improve credit allocation by credit intermediaries and establish viable and efficient capital markets.

This book also raises questions about the re-emergence of fiscal dominance in India, not just of monetary policy tools but also of banking regulations. It makes a case for striking the right balance between the government, central bank, private sector, and markets to drive long-run growth of the real economy. In the conversation, Professor Amol Agrawal will elicit Dr Acharya’s views on fiscal policy, monetary policy, and banking regulations. Dr Acharya will also explain the arguments and plans laid out in this book.