state bank of pakistan opening address by the governor sbp seminar with her excellency ms. christine lagarde, managing director imf emerging markets in the world economy ” 24th october 2016 • her excellency madame christine lagarde, managing director imf, • hon ’ ble senator mohammad ishaq dar, federal minister for finance, revenue, economic affairs, statistics, and privatisation, • esteemed diplomats • learned scholars from academia, • heads and representatives of national and international financial institutions, • government officials, • friends of media, • distinguished guests, ladies and gentlemen, i warmly welcome you all to this seminar! first, let us all greet her excellency ms. lagarde on her visit to pakistan and thank her for gracing today ’ s seminar as the keynote speaker. armed with her remarkable credentials, ms. lagarde has not only led the imf judiciously during a time of global economic and financial stress, but in fact it has been under her leadership that the imf has forged successful collaborations with many emerging countries for their economic betterment. most of these countries have now overcome their short - term external imbalances and adopted better standards of governance – and you can be sure they know exactly who to thank! befittingly, we will request ms. lagarde to enlighten us today on the role of emerging markets in the world economy, drawing on her invaluable insights and extensive firsthand experiences. state bank of pakistan ladies and gentlemen, the relevance of the topic for pakistan is high, as it is an emerging economy with a large population. when we observe the evolving global economy, it is evident that emerging markets face a unique set of challenges, but if managed well, the results have far reaching implications for growth. however, economic developments do not occur in a vacuum ; in fact, they often precipitate a host of new considerations, such as income inequality, social security, environmental concerns, and so on. moreover, for any progress to be truly sustainable, the need for macroeconomic stability in general – and financial stability in particular – is a matter of paramount significance. ladies and gentlemen, it was within this context that pakistan – faced with a balance of payments crisis – embarked upon the imf ’ s external fund facility program in september 2013. at that time, the economy was mired in persistent energy deficiencies, declining development expenditures, rising inflation, and meager foreign exchange

ryuzo miyao : a macroprudential perspective in the conduct of monetary policy speech by mr ryuzo miyao, member of the policy board of the bank of japan, at the 2011 asia economic policy conference, san francisco, 30 november 2011. * * * introduction first of all, i would like to thank the organizer of this conference for inviting the bank of japan and allowing me to exchange views among such distinguished panelists and scholars. today i would like to highlight one of the key issues regarding the conduct of monetary policy, namely a macroprudential perspective in monetary policy making. more specifically, i will discuss how to take into account the risk of accumulation of financial imbalances in the conduct of monetary policy, which could help prevent financial bubbles and subsequent crises. i would also like to introduce our experience and summarize what the bank of japan has done so far in this regard. you may find it somewhat premature to talk about how to prevent future crises given that the world is still struggling in the aftermath of the global financial crisis. however, in order for asia to keep playing a leading role in the global economy, the issue must be of great importance, although i should immediately add that we have not observed excessive financial imbalances in the region. looking back at the period after the asian crisis, we have witnessed a series of incidents that can be deemed crises. it appears that the frequency of such incidents is rising and that efforts to deal with one crisis might have provided the seeds for a subsequent crisis. in the coming years, asia will not be allowed the luxury of simply being pleased with the situation. i. the essence of the global financial crisis as background, let me briefly review the essence of the global financial crisis. although a variety of economic and financial factors are involved, the essence of the global financial crisis is the formation and bursting of the credit bubble. in forming the bubble, the household sector in the united states expanded borrowing and consumption along with the boom in housing prices. on the financial front, new types of transactions such as securitized products and derivatives prevailed, and leverage also increased significantly. such excess in real economic activity, asset prices, and financial markets had a shared influence among each of these components, and this led to further excess that spread beyond national borders, resulting in the global credit bubble. balance - sheet adjustment has continued to constrain recovery in many countries, which is typical after the bursting of a large - scale credit bubble.