“ quantum leap ”, the radical improvement that i would like. europe, as an historic construction, has often been able to make radical progress during times of difficulty and crisis. the governing council of the ecb is ready – within the scope of its responsibilities – to help europe to make essential, new progress. this supposes of course that each of the european partners takes all its responsibilities which are, today, fully of a historic nature. would you like to be able to inspect member states ’ budgets prior to their adoption by national parliaments as the commission proposes to do? each institution has its own responsibilities. the ecb is very closely involved in the work of the commission and the eurogroup. i support the commission ’ s proposal, which i consider to be perfectly aligned with the goal of improving governance in the euro area. i have noticed some negative reactions, in particular in france, and i don ’ t understand this, especially in a country that has a tradition of favouring a strong “ economic governance ”. can non - democratically elected bodies grant themselves a supranational inspection right? the governments of the eurogroup all stem from a democratic process! they are the ones who, following any clarifications from the commission – and where necessary from the ecb – take the decisions. economic and monetary union includes a very close supervision and, when necessary, injunctions and sanctions imposed collectively by the governments participating in the union. we are interdependent, which means that bad management on the part of a single member leads to problems for all of the others. austerity plans are multiplying in europe but certain economists are warning against an overzealousness that could jeopardise growth. what is your view on this? when a household systematically spends more than it earns, so that its debt rises exponentially, its situation is clearly untenable. correcting this situation demonstrates both wise and sound judgment. it is also wise and sound judgment for a country to return to a sustainable fiscal situation in the medium term. there is a semantic issue here. what you call austerity plans i call plans for a progressive return to a sound fiscal situation. in any case these wise policies are favourable to growth since they increase the confidence of households, businesses and investors. today this confidence is – as i have said – essential for the recovery. the oecd has just raised its growth estimates for 2010 and 2011. do you share this view

navigating the great transition : an emerging market perspective speech by dr. veerathai santiprabhob governor of the bank of thailand school of international and public affairs, columbia university october 5, 2016 ladies and gentlemen, it is a pleasure for me to be here in new york and to have a chance to participate in the policy discussion at sipa. given the increasingly complex policy challenges facing the global community, the contribution that sipa makes in educating future leaders to serve the global public interest is critical. i would like to thank professor ito for inviting me. he was one of my early mentors at graduate school and i have benefitted from his many insights ever since. this coming weekend i will be attending the annual meetings of the imf and the world bank. as you know, this is one of the biggest global forums for addressing issues related to the global economy and world financial market. the discussions will be especially pertinent this year given the complex and highly unpredictable state of the world that we face. former premier wen jiabao once described china ’ s growth performance as “ unstable, unbalanced, uncoordinated, and unsustainable ”. this seems like an apt description of the global economy at this juncture. unstable because the proliferation of popular discontent fueled by rising income inequality amidst ongoing international conflicts have greatly elevated geopolitical uncertainty. unbalanced because with anemic recovery of advanced economies, much of the growth in the global economy continues to be driven by emerging markets. in many cases, most prominently in china, this growth has been fueled by increasing leverage. uncoordinated because in a highly integrated world, monetary policy and financial regulatory policy generate substantial cross - border spillovers yet they are being conducted with almost exclusive focus on domestic mandates. and finally, unsustainable because a world in which up to a third of all government bonds in some advanced economies are held by their own central bank and over a third of all developed - country government bonds trade at negative nominal yields cannot be a viable long run equilibrium. this precarious state of affairs is, to a large extent, a reflection of key fundamental forces that have been at play for some time, with their impact now becoming increasingly self - evident. what i want to do today is to set out these underlying forces, draw out their implications for monetary policy, and offer some tentative suggestions of how central banks may respond. in doing so, i will focus from the perspective