I have argued, however, that, given the global nature of the problem and the risks that even the best regulated economies are exposed to, the most lasting and fundamental solutions must lie in long-term prevention and joint action. These preventive measures should include urgent reforms to the international financial architecture to enable it to cope with changing market practices and to reduce the extreme volatility in fund flows that has been such an important factor in this crisis. In the medium and longer term, they should also include efforts to develop stable and transparent debt markets in the region, and greater monetary cooperation, which might also include the development of an Asian Currency Unit. At today’s symposium we are both celebrating a fiftieth anniversary and addressing some of the difficulties that we currently face in this region. This is not a time for complacency, but it is perhaps useful to step back for a moment from present difficulties to reflect on how far we have come, as a region, in the past fifty years. Fifty years ago most of this region was still recovering from the devastation of World War Two; many countries were to face more upheaval in the years that followed. But over the last few decades the region has, through a variety of economic strategies and in differing degrees, enjoyed growing prosperity, greater stability, advancing crossborder co-operation, and, increasingly, freedom from the poverty and strife that confronted earlier generations. This has all been achieved in a context of globalization and economic liberalization.

The annual organisation of this workshop has served to share experiences with the participating central banks and have enriched research work, becoming in turn an integral contributor to policy formulation. These workshops have made a valuable contribution for confirming and interpreting research results, which enable the compilation, calibration and implementation of policy measures for tackling the pandemic and similar shocks. Your findings, comments and discussions assist our authors to improve their studies, and in turn contribute to the formulation and decision making of policy at the central bank. Evidence, analysis and forecasts based on the research work that you will present in these two days will provide accurate and valuable information for orienting and coordinating decision making in the future. 20 research projects will be presented and discussed this year, which in in spite of covering a broad gamut/range of topics, are directly related to the activity and interests of the central bank. We have discussed almost the same topics a year ago however, you could rightly say: “What a difference, compared to last year?” In 2020, discussions were focused on the modern monetary policy, and the role of the central bank’s balance sheet as a permanent instrument of monetary policy that can and should be broadly used to bolster aggregate demand. The current monetary policy debate is concerned with the size and duration of the recent jump in inflation. The latest inflationary developments have divided academics and central bankers into two camps with diametrically opposed positions.