Beyond the 4/5  BIS central bankers' speeches  potentially arbitrary labelling, the efficacy and desirability of a given policy should be judged solely by its outcome and its effectiveness in correcting market failures and imbalances. Only then can policies be evaluated intelligently, fairly and measurably. Today I have talked about how it has become more difficult for central bankers in open economies to conduct monetary policy. I attempted to highlight that in order to manage these difficult challenges, there needs to be sufficient pragmatism and agility by central bankers. Most importantly, policymakers have to be given sufficient space and autonomy to address rising challenges to our respective economies. I am reminded by John Baldoni’s article on “The Secret to Team Collaboration: Individuality”. The author warned about the risks of confusing between collectivism and collaboration. Collectivism leads to confined “group-think” and decisions; collaboration on the other hand breeds innovation. While collectivists do work towards a single goal, they ignore alternate paths to achieve that purpose. Collaborators, however, while similarly focused on a single purpose, arrive at their goals by incorporating different points of view and creative solutions. In short, collectivists value ideology over results. Collaborators are pragmatists that look for alternative ways to get things done. As we move forward and fight for greater policy autonomy, we might be tempted to think that integration and collaboration come at the expense of individuality and domestic autonomy. In my opinion, it is the exact opposite. Collaboration thrives with individuality and autonomy. This is not wishful thinking.

In my years as a central banker, there seems to be an unspoken rule among global policymakers that certain policy paths are one-way, no-return endeavours. Any policy reversals are seen as a backward move that is time inconsistent, which could risk a permanent damage on trust, reputations and credibility of the central bank. For me, this mindset is not tenable and counterproductive. It is imperative to realise that under extreme circumstances, a reversal of policies may be beneficial and in fact, necessary for the greater good and wellbeing of the society. Sometimes, taking a step backward may be the best way forward. A case in point is in the area of liberalisation. While we have benefitted from an open market, and are strongly committed to the principles of this approach, we believe that countries should be cautious in its adoption, giving due consideration to the various trade-offs and preconditions. There might be a situation where a ‘short moratorium’ for further liberalisation becomes necessary. As with everything else, a balanced approach is always the preferred and wiser option. Liberalisation is not a ‘cure all’ for economic development. It is not a panacea for economic sustainability either. Liberalisation requires patience and sequenced planning. Greater openness needs to be phased in and be consistent with the readiness of the domestic market. Should expanded relaxation of policy become a source of financial instability, policymakers must be decisive and have the boldness to change course. This brings me to my final point of my remarks today.