political agenda. ironically, some of these originated from the very economies that advocated globalisation as a means to generate greater wealth. some of these concerns are legitimate and deserve due attention by policymakers and researchers. the advocacy that globalisation should be made fairer warrants strong consideration. maximising benefits and evenly distributing it is a worthwhile goal. let ’ s challenge the conventional wisdom and consider unorthodox solutions. as these solutions will invariably have global dimensions, cooperation amongst countries is critical. this is where the imf, as a global institution, can facilitate and play a meaningful role. globalisation in the aftermath of the crisis in more recent periods, major trends have influenced how we perceive and pursue the globalisation process. the first trend is growing anti - globalisation sentiments and rising populism. we can trace this back to rising inequality and deteriorating standards of living in many communities across the globe. 1 / 5 bis central bankers'speeches between 1988 and 2011, the incomes of the poorest 10 % increased by just usd65, while the incomes of the richest 1 % increased nearly 200 - fold, or usd12, 000. in the advanced economies, workers railed against the intense competition from lower cost producers of manufactured goods such as bangladesh, china and vietnam. coupled with higher living costs, many became marginalised. the angst of these communities have fused into anti - establishment movements and pushback against trade agreements. unfortunately, these circumstances happen at a time when we need to galvanise all our resources to pull away from the setback of what was termed the “ new mediocre ”. second is the growing perception that globalisation erodes national sovereignty. participation in multilateral institutions and international trade agreements is portrayed as a devolution of national policies. the extensive involvement of multilateral institutions in domestic economic affairs and the onerous obligations in trade agreements have incited strong reactions from domestic constituents. this reality, for some, underscores the imbalances associated with globalisation. its economic ramifications are immense, with the consequences of brexit and the retreat of the u. s. from the trans - pacific partnership agreement still unfolding as we speak. the full impact of these developments are only likely to be clear some years from now. this is indeed a most unfortunate situation. when factions exacerbate fractions, it damages even the most established forms of international cooperation. third, the exponential speed of technological change has altered the global economic landscape

peter pang : diverging monetary policies, global capital flows and financial stability opening remarks by mr peter pang, deputy chief executive of the hong kong monetary authority, at the conference on “ diverging monetary policies, global capital flows and financial stability ”, jointly organised by the federal reserve bank of new york / european central bank / federal reserve bank of dallas / hong kong monetary authority, hosted by the hong kong monetary authority, hong kong, 15 october 2015. * * * 1. it is my great pleasure to welcome all of you to this conference jointly organised by the board of governors of the federal reserve system, the european central bank ( ecb ), the federal reserve bank of dallas and the hong kong institute for monetary research. 2. today ’ s conference is very timely. with the us fed contemplating an imminent liftoff in policy rates, while the ecb and the bank of japan ( boj ) are still preoccupied with quantitative easing ( qe ), central banks around the world are carefully weighing the potential impact of the expected divergence in monetary policies on global capital flows and financial stability. financial markets often move ahead of the real economy. we have seen global financial markets tumbled and emerging market economies ( emes ) experienced quite intense capital outflow pressures during this summer. many would be interested to know whether such gyrations of capital flows and asset prices have already captured a good part of the adjustment process or are just a curtain raiser for even stronger threats to financial stability of the emes. 3. but, don ’ t get me wrong. we welcome the normalisation of monetary policy in the us. a timely and orderly exit from zero interest rate policy by the fed should facilitate adjustments of macroeconomic imbalances and help deflate asset bubbles in the emes which have been fuelled by excessive global liquidity since 2008. as the fed ’ s balance sheet is expected to stay elevated for some time while the ecb and the boj carry on with qe, global liquidity should remain abundant in the near term, which should help cushion the impact of a fed rate hike to some extent. 4. that said, no one should safely assume that monetary policy normalisation in the us would be a smooth, painless process for the global economy. even though the fed has repeatedly signalled that its future rate hike path will be slow and gradual, its impact on global fund flows and financial stability is highly uncertain. this is particularly the case as many emes have built up