Javier Guzmán Calafell: Monetary policy amid volatile capital flows

Remarks by Mr Javier Guzmán Calafell, Deputy Governor of the Bank of Mexico, at the Scotiabank Global Central Bank & Public Institutions Conference, Miami, Florida, 6 April 2017.

The views expressed in this speech are those of the speaker and not the view of the BIS.

First of all let me say that I am very glad to participate in this Conference. My sincere thanks to Scotiabank and especially to Alejandro García for the invitation. 

The implementation of monetary policy under volatile capital flows has for long been a challenging issue for emerging market economies (EMEs). Naturally, with globalization and the consequent increased integration of the world economy, the difficulties have become more acute. As is well known, the combination of a number of factors, including domestic financial liberalization, a widespread removal of cross-border controls, and the development of financial technology, has brought about a dramatic expansion of international financial transactions in recent decades.