. how the imf and the central banks provide forward guidance will be key to sustaining global economic growth while maintaining financial stability. 13. i have highlighted a few concerns that have caused me to introspect considerably on the future of the global monetary and financial system, especially as we confront these challenges on a day - to - day basis at the rbi. a global search for effective solutions is underway. this quest must be armed with the lessons of history and experience, and in this context, i commend this book for your reading. thank you. 1 carney, mark ( 2019 ), “ pull, push, pipes : sustainable capital flows for a new world order ”, speech at the 3 / 4 bis central bankers'speeches institute of international finance spring membership meeting, tokyo, june 6 4 / 4 bis central bankers'speeches

oversight over individual countries ’ exchange rate policies. the fund ’ s mandate was updated in 2007 to clarify that exchange rate manipulation was associated with ‘ fundamental misalignment ’ that results in external instability. fears of labelling among the membership led to several reviews culminating in 2012 when an integrated surveillance decision was adopted, which emphasised the connection between domestic and external stability as well as global risks and spillovers. 6. in pursuit of this mandate, the fund, in its article iv consultations every year, undertakes indepth assessment of members ’ economic developments and policies, including and especially exchange rate policies. this is backed by rigorous technical evaluation through a suite of models. the consultations report is published and any case of exchange rate misalignment and / or multiple currency practices is candidly brought to the notice of national authorities for correction. this is mandatory, as the articles of agreement constitute an international treaty ; and in india, they are underpinned by parliamentary legislation in the form of the international monetary fund and bank act, 1945. given this multilateral framework, the overlay of bilateral labelling that i talked about earlier raises questions, including on the role of the fund itself. 7. admittedly, like any policy - making institution, the fund ’ s policies and practices will not always be the right or the best in terms of their efficacy. as its own independent evaluation office ( ieo ) pointed out in 2005, a major reason for the fund failing to meet its core responsibility of exchange rate surveillance was a strong sense among some member countries of a lack of even - handedness in surveillance – that somehow, it was tolerant of currency depreciations but not of countries resisting appreciation. this criticism by the ieo persists in its evaluation update of 2017. notwithstanding such criticisms, the imf is open to learning and deservedly remains a well - respected institution. we, therefore, look forward to engaging with the fund on its april 2019 proposal for a more integrated framework encompassing the interaction of monetary, exchange rate, macro - prudential and capital flow management policies. i strongly believe that a multilateral framework under the aegis of the imf is the most appropriate approach to deal with these issues. 8. it is important to appreciate the context in which emes operate so as to foster a shared understanding of their challenges. first, the nature of shocks which these countries face has changed from balance of payments strains to full - blown financial crises. second, in the