Jamshedpur : Twelfth session of leadership series organised by class of XLRI –PGDM (GMP), the one-year flagship MBA course of XLRI, took off with an informative speech by Dr. Prachi Mishra, Chief General Manager and Specialist Adviser (research) in the Department Of Economic And Policy Research at Reserve Bank Of India.
Dr. Mishra interacted with the students through a highly informative presentation that essentially talked about Monetary Transmission in developing countries.
She started her presentation with Leo Tolstoy’s famous quote “All happy families resemble one another; each unhappy family is unhappy in its own way”.
She went on to describe a “typical” happy family and argued that contrary to Tolstoy, most unhappy families share some common characteristics. She then talked about Short-term interest rate, Bank lending and Exchange Rate Channels.
She went on explaining “Demand Switching Effect” and talked about Long-Term Interest Rate Channel, Asset Channel and Balance Sheet Channels. Dr. Mishra then commented on traditional practices in terms of key channels and explained to GMPians that why Bank Lending Channel should take the center stage in a developing economy.
Responding to one of the student’s query, she talked about assumptions relevant to India and how sometimes people focus more on repo rate, overlooking other developmental factors such as financial inclusion.
Dr. Mishra then explained to students the methodologies to study the Bank Lending Channel and expounded how the developed and developing countries respond differently to country-specific nominal shocks.
She then talked about the Impossible Trinity of Fixed Exchange Rate, Free Capital Movement and an independent Monetary Policy. She concluded her presentation commenting on how monetary policy changes impact small and less liquid banks more than established banks.
Dr. Mishra holds a doctorate degree from the prestigious Columbia University, where she had the privilege to work with Mr.Jagdish Bhagwati, the renowned American economist. Prior to joining RBI, she had worked as a senior economist at the IMF’s Monetary and Capital Market Department.
Dr. Mishra, an alumnus of Delhi school of Economics, has several research publications to her credit in the areas of International Economics, Macro economics, Political Economy, and Development Economics.
She started off the session with an applause for XLRI for being pioneers in the world of management education and reminisced how her friends at Delhi University prepared hard to get an admission into XLRI.