Internationally, we are working closely with the US Treasury as co-chairs of the G7 Cyber Expert Group to develop and disseminate best practice in information sharing, penetration testing and as of next year, cyber recovery. And an anti-fragile system requires a Comprehensive Macroprudential Framework. Macroprudential frameworks encourage authorities to meet the next challenge, not simply fight the last war. They prompt exploration of “what could happen?” not the false comfort of being ready for what is most likely to happen.41 Macroprudential authorities must consider the safety of the financial system as a whole. That requires both comprehensive and varied stress testing of the core as well as regular examination of the risks that may lie beyond the regulatory perimeter. Macroprudential policy should be countercyclical, building resilience when risks are increasing and drawing on that resilience when risks crystallise. And it must address the macro-financial implications of major imbalances in the real economy, whether in housing markets or the balance of payments. 41  Alex Brazier ‘How to: Macropru’, 2017. 12  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  12  IV. BREXIT: Macroprudential policy in practice Consider a topical example: the Bank of England’s macro-prudential approach to Brexit led by the Bank’s independent Financial Policy Committee (FPC). When it comes to Brexit, the Bank of England does not focus on the most likely outcome, but rather the possible consequences of a disorderly, cliff-edge exit from the EU, however unlikely that may be.

For legitimacy and effectiveness of measures and also for better global governance, emerging economies should involve in decision-making process and be part of the solution. However, emerging countries should also be aware of the fact that more power in decisionmaking process comes with more responsibilities. Both developed countries and emerging market countries share the blame in global economic imbalances that worsened the magnitude of current crisis. In theory, the adjustment of imbalances should have taken place through either exchange rates or interest rates or both. Mainly developed countries prevented that adjustment on the interest rates, whereas emerging market countries joined their counterparts by preventing adjustment on the exchange rates. Today, many people debate the need for a new global reserve currency, creation of an international clearing system, enhancing the role of central banks, and establishment of a supranational body to safeguard global economic and financial system. These discussions are necessary and maybe overdue. A global reserve currency might be needed to alleviate the tension between appropriate monetary policy of the reserve currency country and that of the global economy. Creating an international clearing agency between trade partner countries may be useful to reduce the need for accumulating foreign exchange reserves. A supra-national body may be the only solution for the externality problem in the Bretton Woods system and its successor, so called, the Bretton Woods II. Main responsibilities of central banks may be enhanced to the stability of asset prices as well as prices of goods and services.