In Asia, efforts are underway to address these specific issues recognising that in this interconnected environment, the execution of remedial and containment measures will be highly complex and challenging. Focus is also being given to having enhanced surveillance and oversight that is complemented by a robust framework for governance, transparency and accountability. Given the strong presence of international institutions in the Asian region, we have strong interest in the establishment of an effective cross border resolution mechanism so that any failure of such large and systemically important institutions with cross border representations can be dealt with effectively in an orderly manner. This will require cooperation and coordination across countries, taking into consideration their differing regulatory and legal systems. A further priority in emerging Asia is the promotion of responsible market practices and consumer protection given the stage of development and level of financial literacy. There is significant scope for creating greater global momentum for improvements in regulatory standards on market practices. Much work still remains ahead and would require resolve and commitment in this reform agenda. The more inclusive global process is critical to this effort and should be further deepened to truly reflect the global dimension of the financial system in this 21st century. On the recent increasingly intense debate on the role of the exchange rate as the solution to the global imbalances, it needs to be recognised that the foreign exchange market is not like any other markets.

The statistics gathered from these talks – for example on firms' inflation expectations, but also on other evidence, such as changes in companies' price-setting behaviour – can be useful in assessing regime changes before they show up in the official statistics. Systematically collecting and evaluating as much information as possible is crucial. However, in a situation of exceptionally high uncertainty, a key challenge for policymakers is to find the right balance between waiting for additional information and not falling behind the curve. This brings me to the third principle for decision-making: determination. Determination The literature provides arguments for both a wait-and-see approach and more aggressive policies, depending, for example, on whether the uncertainty is related to measurement, the effectiveness of policies, or unforeseen developments. In practice, in an environment such as the one we face today, mixed signals on the persistence of inflation might tempt policymakers to postpone further reaction to inflationary pressures until uncertainty about future inflation has receded. Yet uncertainty must not mean indecision. A risk management approach to policymaking sometimes calls for decisive action. At times, the optimal policy decisions may be those that provide insurance against particularly bad, though very unlikely, events. The SNB's tightening of its monetary policy over the past year should be seen in this context. Towards the end of 2021, at a time when the inflation outlook was still relatively benign, we began to tolerate a certain nominal appreciation of the Swiss franc.