country. as such, the bank of mexico did not consider it necessary to raise policy rates during its recovery period, unlike many other latin american central banks. these developments underscore an important point – that while central banks may benefit from coordination and cooperation, taking the same policy stance at the same time typically will not be the best choice for all central banks. accordingly, it is imperative for each central bank to have monetary policy tools to appropriately address domestic objectives independent of the actions of other central banks. conclusion in this age of global financial integration, the federal reserve and other central banks often must cooperate to achieve their individual mandates. this need for coordination has been especially true during the recent crisis, when the actions of central banks working together proved very helpful in easing financial strains and boosting confidence. indeed, closer ties and more - open lines of communication across central banks are some positive outcomes of these difficult times. this spirit of cooperation should continue as our respective central banks work to pursue monetary policies appropriate for our own economies while supporting stable financial systems around the world. bis central bankers ’ speeches

of emerging markets. as the old saying goes, the only constant is change. but the speed of that change is not constant. the pace of change tends to pick up around major transitions before settling down again when some sort of equilibrium is reached. the great moderation was a period of relatively steady change during which world output grew steadily and inflation was low and stable. the global financial crisis created a major upheaval that led to the great recession. the subsequent recovery has been remarkably drawn out and almost 10 years on, you could say that we have been living through a great transition. i would like to highlight three pivotal transitional forces that have shaped our economic and political landscape. first, after decades of rapid expansion, world trade has slowed down considerably. during 2012 to 2015, world trade volumes grew at around 3 percent per annum, much less than the pre - crisis average of 7 percent for 1987 - 2007. cyclical factors have certainly been at work, but the slower pace of growth relative to world gdp points to deeper structural forces at work. chief among these is the waning impact from the integration of china and central and eastern european countries into the world economy, as well as the diminished room for further international fragmentation of production through global - value - chain trades. more speculatively, rising protectionism may have also dampened trade in recent years. nevertheless, the level of trade integration across the world is as high as it has ever been. second, economies the world over have seen a rising contribution of the service sector to growth. a key driver of this transformation has been technological innovation, especially in digital communication. for the world as a whole, the share of services as a proportion of gdp is now as high as 70 percent. this shift has not been confined to advanced economies but can also be seen in emerging markets. in china, for example, the service sector has grown to more than half of gdp in 2015, much of it driven by a surge in e - commerce and the expansion in logistical services required to support it. moreover, as the cost of digital technology declines, a wider range of services are becoming more tradable including design, marketing, business processes, and education. thus not only has the service sector become more important within a country, the share of international trade in services has also increased markedly. the third, and perhaps most unsettling transitional force, is the ultra - accommodative monetary policy stance adopted by major advanced economies. what started out as extraordinary