##mic rebound in global aggregate demand combined with a large rotation of that demand from services to goods put huge pressure on global supply chains, which was unable to respond. this was compounded by a surge in commodity prices in the wake of the russia - ukraine war. supply constraints have clearly taken prominence, and their impact may well extend beyond the immediate horizon. at a deeper level, secular trends in globalization and demographics that have hitherto created a powerful tailwind, expanding production possibilities and generating persistent disinflationary pressures, may also be turning. increasing fragmentation 1 / 4 bis - central bankers'speeches and ageing populations, along with the necessary but costly green transition will likely exert supply headwinds and upward price pressures going forward. in a nutshell, the economic backdrop facing central banks has shifted from one of insufficient demand to insufficient supply. the challenge of inflation being too low has turned to inflation being too high. for monetary policy, the constraint on achieving inflation targets has shifted from the zero - lower - bound to the inability to influence inelastic supply. calibrating and communicating policy under this new landscape will be very different than before, as we have already seen. in parallel, the financial system is also evolving, and with it the risks and pressure points that central banks need to address. the greater prominence of the financial cycle, both domestically and globally, has transformed the nature of economic fluctuations, linking them more to swings in funding conditions, asset prices and risktaking. the increased role of non - bank financial intermediaries ( nbfis ) has also created new potential vulnerabilities, not least because regulation of nbfis has lagged behind those of banks. indeed strains in the nbfi sector were at the heart of financial stress during the covid - 19 crisis, as well as recent tensions in sovereign debt markets. finally, advancements in cryptography and distributed - ledger technology have led to a proliferation of digital assets and tokens, some of which circulate in parallel infrastructure outside of regulatory control and oversight. it has also spurred a concerted effort by central banks to harness these new technologies, through cbdcs and other initiatives, in order to ensure that central bank money remains fit - forpurpose in a digitalized monetary system. shifting conceptual frameworks a radically different economic and financial landscape has forced some deep fundamental rethink of conceptual frameworks guiding policy, tracing out a second fault line. facts on the ground are increasingly testing

needs to catch up, there is no catching up if we fall behind the curve on climate change. it is a one - shot game. and the consequences of getting it wrong would be catastrophic. responding to climate change is not simply about taking into consideration the effects of the green transition on inflation, nor the possible repercussions of physical and transition risks on financial stability. but it is also about actively taking steps that helps influence the incentives and willingness of society to alter their behaviours in such a way that mitigates adverse climate change. the most impactful channel for central banks in this respect is through the financial system. incentives, mindsets, and expertise in the financial sector must be geared so as to ensure that sufficient resources become available to finance the green transition. this requires a collaborative approach, both among agencies within a country, as well as internationally. initiatives being pursued by bodies such as the network of central banks and supervisors for greening the financial system are therefore critical. forging ahead amidst shifting grounds mervyn king once said that central banking should be boring. there was a time when that was true. there may come a day when it is true again. but that is not today. the task at hand is far from straightforward. maintaining economic and financial stability amidst the shifting fault lines will require a steady hand. to see through the noise of rapidly changing circumstances and distill the essence that policy should respond to. it will require humility in our understanding of the world so that we can adapt to incoming information and seek broad input from all stakeholders. and it will require staying focused on achieving our core mandates, ensuring that expectations for our policy goals are commensurate with the tools we have while recognizing the potential unintended side - effects of those tools. for 80 years, the bank of thailand's commitment to growth, stability and prosperity of the thai economy has been unwavering. we will remain steadfast to this commitment in 3 / 4 bis - central bankers'speeches navigating through the uncertain terrain ahead. thank you all again for being part of this conference and i look forward to learning from your insights. 4 / 4 bis - central bankers'speeches