It is safer, in crisis management, to err on the side doing too much rather than doing too little, said Duvvuri Subbarao, the governor of the Reserve Bank of India.

Subbarao said that the policy responses of governments and central banks during the financial turmoil should be seen as an insurance against such risk. He said that there was no real way of judging whether a policy response was over-insuring or under-insuring.

The governor agreed that if the world has over-insured, then there was a