through financial channels should be minimized. to this end, eurozone member states should build a strong firewall ensuring financial stability, while providing sufficient public funds to banks that they can be recpaitalized to fend off contagion effects. third, trade and financial protectionism should be completely rejected. fourth, even though implementation of a new international financial regulatory framework is desirable for global financial stability, we need more thorough analyses and studies on whether there is a possibility that the framework could undermine the incentives for appropriate risk sharing needed for productive investment. last but not least, global financial safety nets should also be strengthened. this poses the question, what kind of role should central banks play in seeking such global solutions? i think that above all central banks need to remain faithful to their original mandate. they should contribute to economic growth by maintaining price stability and financial stability and establishing an effective macroprudential policy framework to manage systemic risks. in particular, major advanced nations ’ central banks need to bear in mind that their monetary policies could have negative spillover effects on emerging market countries. i think even from advanced nations ’ standpoint, the benefits from precluding the possibility of adverse effects would far outweigh the ex - post costs caused by conducting monetary policies in consideration of their own conditions alone. let me conclude. as i am sure you are all too well aware, it has been four years since the global financial crisis broke out in september 2008. there is an urgent need for policy responses commensurate with the changing conditions in line with the most severe global financial crisis since the great depression in the 1930s. as i mentioned earlier, to overcome the challenges facing us, we need above all to consider the measures at the global level. to that end, close cooperation in the global community is required, bearing in mind the growing role of emes. the world economy nowadays seems to be waiting for a sage like the philosopher aristotle who claimed that the whole is greater than the sum of its parts. that is because, in this increasingly multipolarized environment, global leadership which can envision “ the whole ” future of the human being is becoming more important than ever before so as to address transnational issues, including global policy cooperation and coordination for global financial regulation and global sustainable growth. in the face of the unprecedented great depression in the 1930s, our august predecessors in office were bold enough to change their conventional wisdom and recast the academic framework of the macroeconomy from a new perspective

, including the build - up of leverage which can be triggered by monetary policy, by using macroprudential policy instruments which reduce the interconnectedness of financial institutions and procyclicality through regulations on financial institutions ’ balance sheets. furthermore, if additional macroprudential policies which can contribute to financial stability successfully play a complementary role to monetary policy, this can contribute to enhancing the monetary policy ’ s credibility and transparency. in order to achieve financial stability through the harmonization of operations between the two policies, it is essential for the various policy authorities to cooperate closely. and there is a global trend toward emphasizing the central bank ’ s role in setting up an institutional framework to ensure seamless cooperation. policy decisions should be made through this institutional framework based on adequate sharing and analysis of information to avoid overlap and conflict between policy goals. in the process, the role of the central bank is important particularly since it is in charge of monetary policy and forms the mainstay of macroprudential policy implementation. while carrying out monetary policy so far, central banks have been equipping themselves as systemic regulators to take the lead in implementing macroprudential policies by building up expertise in evaluating overall economic conditions and financial market stability based on their process and analysis of macro and financial data. the us fsoc ( financial stability oversight council ), europe ’ s esrb ( european systemic risk board ), the uk fpc ( financial policy committee ) set up to carry out macroprudential policies since the crisis show that the central bank plays a leading role within the financial stability policy agencies. bis central bankers ’ speeches conclusion almost five years have now gone by since the global financial crisis and we have faced two major assignments of overcoming the crisis successfully and subsequently preventing a recurrence of the crisis. on the one hand, major advanced countries are implementing quantitative easing to overcome the crisis, and on the other hand international financial bodies such as g20, fsb and bcbs are developing global financial regulatory reform measures and promoting their implementation. coordinating these measures designed to overcome the crisis and prevent its recurrence is one of the major challenges the international community now faces. along with this, international policy cooperation to curb regulatory arbitrage, as well as each individual country ’ s coordinated operation of its macroeconomic policies, is crucial for the sustainable and stable growth of the world economy. there has been of course a constant repetition of financial and economic crises, most prominently the great depression of the 1930s, and