remarks by javier guzman calafell, deputy governor at the banco de mexico. panel on “ end of qe and rising interest rates : implications for advanced and emerging market economies ”. ubs 24th reserve management seminar. thun, switzerland, june 26, 2018. 1 i am very glad to have the opportunity to participate in another ubs reserve management seminar. i thank the organizers for their kind invitation. over the several years that have followed the outburst of the global financial crisis ( gfc ), emerging market and developing economies ( emdes ) have been able to sustain a satisfactory pace of expansion, with 2018 expected to record the third consecutive year of accelerating activity. the expansion of emdes has been partly nurtured by the aggressive relaxation of monetary policy stances in the advanced economies ( aes ), which implied a significant easing of external financial conditions, as evidenced by the vast amounts of international funds made available to emerging markets at historically low costs. for instance, bond spreads on emde sovereign debt were around 137 basis points lower in 2010 - 2018 than in the years preceding the gfc. given the prolonged period over which such a situation was sustained, as well as the magnitude of the adjustment needed to accommodate the surge in global liquidity, it comes as no surprise that this phenomenon has given rise to a gradual, albeit significant, buildup of vulnerabilities in the global economy and financial system. in fact, since the early stages of this process, warnings the views and opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the institutional position of the banco de mexico or of its board of governors as a whole. have been made about its likely pernicious effects on the performance and stability of emdes and their financial markets, including through the potential acceleration of domestic credit cycles and appreciation of local asset prices ( notably exchange rates ) beyond what fundamentals would suggest. thus, challenges have emerged as this process is reversed. since the onset of the global market correction of mid - april this year, the accumulated portfolio flows ( in both equity and debt ) of foreign capital to emerging markets have been negative. portfolio flows exiting emdes amounted to usd 17. 1 billion over the 40 - day period that followed the start of the event, a figure comparable in magnitude to that observed in the equivalent period after the 2013 “ taper tantrum ” and the 2016 us presidential election ( usd 18. 7 billion and usd 18. 8 billion, respectively ).

agustin carstens : cooperation among central banks at the beginning of the xxi century keynote speech by mr agustin carstens, governor of the bank of mexico, on the occasion of the 60th anniversary of the center for latin american monetary studies ( cemla ), mexico city, 19 july 2012. * * * good evening, everyone. we are pleased to welcome you in mexico and we are honored to share this dinner with you to commemorate the 60th anniversary of cemla. we are very proud of the fact that the center for latin american monetary studies is celebrating its 60th anniversary. we are particularly thankful to javier guzman for the invitation and i congratulate him for having organized this conference to discuss the importance of cooperation among central banks at the beginning of the xxi century. precisely this spirit of collaboration was the foundation in the creation of cemla. today, just like at its beginnings, such spirit is the element supporting the institutional bonds among its members, providing cohesion and substance to the joint efforts aimed at confronting similar challenges, recognizing, at the same time, the differences and peculiarities of each member, which add richness and variety to the cooperation and collaboration. nowadays, cemla ’ s main objective is to promote a better understanding of the core issues in central banking in latin america and the caribbean, giving priority to the following : a ) monetary stability, b ) financial stability, and c ) regional and international coordination. there is no doubt that in the last 60 years the economic environment in latin america and the caribbean, and of course around the world, has changed considerably. for example, central banks ’ functions have evolved throughout these six decades. it has been a long institutional development, which emerged from a relatively narrow vision where central banks ’ key role was to provide money to the economies. later on, latin america went through a period when our institutions put an emphasis on credit allocation policies. finally, with greater institutional independence came the next step towards a modern central bank, where the main priority is the mandate to procure monetary and financial stability. thanks to this transition, the concurrent periods of economic and financial crises in the region came to an end. it must be acknowledged that major advances have been accomplished in this regard. however, the fact that we have greater macroeconomic stability in latin america does not mean that we can lower our guard. on the contrary, we should maintain discipline in our fiscal and monetary policy frameworks and strengthen regional cooperation in order to face external shocks to which