gfsns ), which took on detailed form at the seoul g 20 summit. in this context, notable advances were achieved last year in the improvement of the imf loan facility. there remain, however, some aspects of it in need of further refinement. therefore the french initiative set out this year in this area is greatly welcomed and i look forward to its successful realization. no jurisdiction is opposed to the idea of international coordination in principle, but when the interests of individual countries are in conflict, when the benefits from coordination are not obvious, or when there is no urgent call for it, then it is very hard to bring about international policy coordination in practice. that at any rate was korea ’ s experience as the g 20 chair last year. it seems there is already a firm consensus among the g 20 member countries as to the overarching imperative of policy coordination through the g20 framework for the synchronous growth of the world economy. this being the case, it binds us all to put into practice in all good faith what we may term the mutual trust built up through negotiation and agreement. 2. domestic dimension from a domestic perspective, the coordination problem lies in the institutional arrangements in relation to macroprudential policy. if the institutional setting for macroprudential policy is not configured properly, its coordination with monetary, fiscal, and other policies may well become problematic. as macroprudential policies are thrust into the spotlight, it is possible, misguidedly, to take the view that it is feasible to deal with inflation by means of macroprudential tools. accordingly, monetary policy is increasingly likely to be adversely affected by the overzealous use of macroprudential tools. hence, it is critical that there should be a clear understanding that macroprudential policy does “ not substitute ” for monetary policy but rather “ complements ” it. iv. the way forward lastly, i wish to draw attention to the following two issues that may shed some light on the trail that lies ahead. first, potential imbalances in the future may arise from entirely new sources. as the boundaries between differing spheres are being dissolved in the process of globalization and increasing interconnectedness, social political and geopolitical risks once remote may well spill over more easily to the real economy and result in increased economic risk. one example springs readily to mind. the current events unfolding before us in the middle east are upping the geopolitical risks and triggering such

inaugural address 21 april 2022 rhee, chang yong governor bank of korea my fellow members of the bank of korea, it is a great pleasure to meet you all. i stand here today having been appointed governor of the bank of korea. as an economics major - - whose career over the years was spent in academia, government and international organizations - - i cannot help but feel emotional, as i now find myself here with you at the central bank at the forefront of financial and monetary policy. it is a great honor for me personally, but i also feel the heavy weight of the expectations and responsibilities on my shoulders. first, i would like to take this opportunity to express my heartfelt gratitude to all the governors, to my fellow staff, and to the members of the monetary policy board, for their dedication to advance the national economy and the bank of korea. in particular, i pay tribute to my predecessor, governor lee juyeol, for showing such excellent leadership over the past eight years and taking the initiative during the post - pandemic recovery to preemptively normalize monetary policy. i am committed to further build on the public trust and reputation earned over many years by my predecessors. fellow members of the bank of korea, after being nominated as governor, i inevitably found myself reflecting on the korean economy in a new light. from a short - term perspective, the difficulties surrounding monetary policy are being compounded by a prolonged russia - ukraine war, a faster - than - expected normalization of monetary policy by the us federal reserve, and a possible slowing of the chinese economy following the spread of the omicron variant. amid a further rise in inflationary pressures, it appears that the momentum of recovery is going to be weaker than originally forecast. with the trade - off between growth and inflation further constraining the conduct of monetary policy, it is time to steer policy with an aim to strike a delicate balance. together with other 1 / 6 members of the monetary policy board, our consensus - oriented decision - making body, i will always do my best to arrive at the optimal policy decisions. what weighs on my mind, however, is not just the immediate difficulty of deciding policy. from a longer - term perspective, the korean economy stands at the crossroads of a great transformation. there is growing likelihood for the accelerated pace of transition to a digital economy, together with the decline in globalization, to take root as the new, postpandemic normal. as conflicts between nations deepen