adequate buffers in the form of foreign exchange reserves is a natural self - insurance to manage these risks better and thereby prevent the risks from assuming systemic proportions, threatening financial stability. in the absence of a broader swap network, the macroeconomic environment of each country will inform the choice of policy instruments. in such a milieu, international financial stability is endangered when the inadequacy of buffers precipitates a crisis in one country and assumes global proportions. likewise, there cannot be any common code or uniform approach to capital account liberalisation. nimble capital flows management needs to be intellectually mainstreamed ( as also in practice ) as a conventional matter - of - fact component of the macro - prudential toolkit. indeed, any attempts to discourage the use of foreign exchange reserves as a macro - prudential tool would necessitate that capital flows have to be managed more actively. conference deliberations today and tomorrow could, perhaps, help shape the dialogue in this regard. 4 11. the conference may explore : how effective are such policies? should we think of them as short - term interventions or long - term policies? 12. financial stability is also endangered by asset bubbles. yield chasing investors – both domestic and foreign – can catalyse ( contribute to ) frothiness in asset markets. how much attention should central bankers be paying to such froth in asset markets in deciding monetary policy? 13. the link between asset markets and the real economy is another area of continuing interest for central banks. while the issue probably came to the fore during the global financial crisis, the mechanisms and channels which link them qualitatively and quantitatively are of fundamental importance for monetary policy. 14. a related source of concern for policymakers is about managing inflation. there is growing global uncertainty regarding the determining factors of inflation, especially in advanced economies. do we need to rethink the monetary transmission mechanism itself or is the recent weakening of the traditional link between policy and inflation just a temporary phenomenon? 15. a number of the papers in this conference will address some of these subjects. i look forward to fruitful discussions which will not just push the debate forward on these issues but, hopefully, also provide some enlightening policy insights. 16. thank you. 1 the government has been, inter alia, active in managing price pressures in some of the key food items. 2 one aspect in this context which hasn ’ t received the requisite attention is that those economies /

. continuous processes for the entire ai lifecycle still have to be defined and scaled for business needs. that means that ai must be embedded in the process of acquiring and organising data, modelling, analysis and delivering analytics. the skills gap, particularly with regard to data science and machine learning expertise, is the foremost challenge. at this stage, non - human intelligence is far from replacing the human brain in any respect. computers are like school pupils dividing numbers mechanically without having understood what they were doing. 3 consumers should take care : they remain the risk - takers what makes this development so significant is the fact that it is not just occurring at the level of systemic institutions, markets and stock exchanges. with robo advisers, for example, ai can directly influence and control the daily financial decisions of customers and ultimately their personal wellbeing. society has barely begun to understand the economic, ethical and social implications of ai. while client interaction is made more convenient by mobile banking, chatbots or virtual customer assistants, banks can find out more about customer habits and provide them with tailor - made financing. consumers may be rated by ai when applying for a mortgage. pooling data points from internal transactions, social networks and other sources provides a more meaningful picture of banks ’ borrowers. but denials may be hard to understand. it may become even harder to challenge a decision made by algorithms. the proper functioning of the applications is not a given. simple flaws, cyberattacks and criminal behaviour render the systems extremely vulnerable. consumers should be cautious. they need to be protected. laws may have to be modified to cover new threats. responsibility and liability in the case of malfunctioning machines have to be clarified. 4 fintechs should not ignore the legitimate concerns of society and supervisors agile tech companies are driven by an admirable energy and inspiration. by nature, they take risks. they create an idea, build a prototype and try it out immediately in the real world. regulation, supervision, obligations and requirements must make them extremely nervous. but the wellbeing of society depends on rules. the public demands cybersecurity, data privacy, consumer protection and financial stability. fintechs should not brush aside the concerns of 2 / 4 bis central bankers'speeches their stakeholders. business can only flourish if it is broadly accepted by citizens. fintechs usually pick up specific elements of the work chain of finance or create new features. using technology, they modularise and customise products as a third