##ity through fx loans using the proceeds of a currency swap arrangement with the fed and unlimited rp purchases. we also increased loans through the bank intermediated lending support facility for smes and small businesses, and to stabilize the credit market we decided to make loans to a non - bank financial institution and an spv that purchases corporate bonds and commercial paper. fortunately, our financial markets have stabilized thanks to active responses by the government and the bank of korea. however, many hurdles are expected on the road to a full recovery from the real economic crisis created by the covid - 19 pandemic. among other things, the timing and speed of the recovery will greatly depend on developments of the pandemic going forward. worsening employment conditions and declining debt repayment capacities in the private sector could also constrain a fledgling recovery. 2 / 7 what is more, the outbreak of the coronavirus disease will cause no small changes to our economic structure. affected by the current crisis, deglobalization will begin in earnest, and it could then weaken global supply chains and greatly shake the order of free trade. the spread of untact economic activities will expedite the digitalization of society as a whole, accelerating the fourth industrial revolution and intensifying global competition. in this process, the imbalances that have accumulated in each sector of the economy, such as labor market dualism, income polarization and debt buildup, could become even worse. considering this changing economic environment, we must waste no time in gearing ourselves up for the post - corona era, while doing everything we can to overcome the crisis. unless we move beyond the past paradigm of growth relying on accumulation of physical capital, we will not be able to escape low growth even after overcoming the crisis. the best way to prepare for the new era is to establish a productivity - oriented growth framework based on knowledge and technology, by making sure that autonomy and creativity in the private sector can be fully realized. dear fellow members of the bank of korea! the economic crisis triggered by the coronavirus pandemic and the ensuing changes to our economic environment i mentioned earlier are presenting more serious challenges than ever before to the central bank as well. 3 / 7 first of all, we must faithfully fulfill our role as the central bank to surmount the crisis. monetary policy should remain accommodative until the economy is expected to emerge from the coronavirus - triggered crisis and show a trend of recovery. to maintain

financial market stability and smooth credit flows, the bank of korea should appropriately deploy policy tools apart from interest rates, if necessary. in addition, we need to closely cooperate with the government to ensure that policy effects are maximized. while maintaining an accommodative monetary policy stance to overcome the crisis, we should not let our guard down against the possibility of financial imbalances building up over the medium - and long - term horizon. this is because we have seen recurring cases in which crises were caused by the accumulation of financial imbalances such as excessive credit expansions and asset price bubbles. while overcoming the current crisis with preemptive responses, we also should devise plans in advance to unwind these unprecedented measures once the crisis subsides. the covid - 19 crisis could raise questions about whether inflation targeting is suitable to the current situation. even before the crisis, inflation had been running below the target level for a considerable period. in the post - corona era, low inflation could continue for a long time as the incentive for precautionary saving increases, demand slows from accumulation of debt, and digital transformation accelerates. we will need to carry out research on how to improve the monetary policy regime, while closely monitoring the discussions among major central banks. 4 / 7 as we can see from the controversy that started last year surrounding facebook libra, digital transformation could move beyond the private sector to the central bank ’ s payment and settlement system. as an institution responsible for ensuring the safety and efficiency of the payment and settlement system, the central bank needs to proactively respond to these changes. the currently ongoing research and development on central bank digital currency must be carried out as planned. it would also be noteworthy to see how a growing number of central banks are setting up fast payment systems that they directly establish and operate under their real - time gross settlement systems in order to reduce settlement risk. lastly, as central banks respond to the recent crisis, there has been an ongoing debate over the extent to which their role should be expanded. although the currency issuing authority has been granted to the central bank by the public, it is a fundamental principle that the central bank should execute it prudently, given that the authority ultimately belongs to the public. however, during the recent crisis, there have also been growing voices calling for the central bank to take bold actions as a “ crisis fighter. ” going forward, we will need to think deeply about the extent to which we should accept calls