The financial crisis has not undermined the core objectives or approach to monetary policy, Subir Gokarn, a deputy governor of the Reserve Bank of India, said in a 1 December plenary lecture in New Delhi.

Rather than sparking a fundamental change, the crisis showed the importance of policy flexibility when confronted with shocks, Gokarn said. "This essentially suggests that a standard approach be followed in normal times but deviations are legitimate when times turn abnormal; of course somebody