In its 81st Annual Report the BIS says that, although the global economy has been improving, it would be a mistake for policymakers to relax. Numerous legacies and lessons of the financial crisis still require attention. The Report analyses the challenges policymakers face in building a lasting foundation for sustainable growth and proposes ways to address them.
Introduction: Building a stable future
Over the past year, the global economy has continued to improve. In emerging markets, growth has been strong, and advanced economies have been moving towards a self-sustaining recovery. But it would be a mistake for policymakers to relax. From our vantage point, numerous legacies and lessons of the financial crisis require attention. In many advanced economies, high debt levels still burden households as well as financial and non-financial institutions, and the consolidation of fiscal accounts has barely started. International financial imbalances are re-emerging. Highly accommodative monetary policies are fast becoming a threat to price stability. Financial reforms have yet to be completed and fully implemented. And the data frameworks that should serve as an early warning system for financial stress remain underdeveloped. These are the challenges we examine in this year's Annual Report.
Building a stable future
The views expressed here do not necessarily reflect the views of the BIS member central banks.