Issues faced by emerging market economies in the evolving international monetary and financial system: what has the global financial crisis revealed?
Speech by Mr Luiz Awazu Pereira da Silva, Deputy General Manager of the BIS, at the City Lectures, Official Monetary and Financial Institutions Forum, London, 19 September 2016.
The Global Financial Crisis (GFC) revealed larger than anticipated interconnected weaknesses in our international monetary and financial system (IMFS), in our regulatory framework and in the local macro framework used by emerging market economies (EMEs). Thus advanced economies (AEs) and EMEs need to work on strengthening their domestic macro framework and putting their "house in order" from a macro-financial perspective; and the global regulatory framework needs to be strengthened to contribute to reinforcing the disciplinary dimension of the IMFS, especially given the current potential volatility that monetary policy divergence and unconventional monetary policy have created. The coordination of macroprudential policy across AEs and EMEs could be a potential win-win for the IMFS. This could offer a progressive way out of the policy stance prevailing in this phase of the GFC.