policy stance, especially if sustained over a prolonged period of time, can effectively be countered by targeted micro - and macroprudential measures. conversely, situations that require a tighter monetary policy stance, but for which a more nuanced effect on the real economy is desired, may call for a simultaneous relaxation of prudential measures that perk up economic activity via easier lending conditions, provided the health and stability of the financial system remain within safe margins. 8 lastly, although generally operating over a longer - term horizon, structural reform should also be a strategic part of policy coordination in emerging market economies. by providing incentives to improve the overall functioning of domestic input and product markets, increasing their competitiveness and strengthening the institutions within which they operate, policies that overhaul structural aspects of the economy foster efficiency gains that increase its productive potential. thus, a successful implementation of structural reform can ultimately result in strengthened buffers in other areas of policy as, for instance, an expanding productive capacity may offset the potentially adverse impact of restrictive fiscal and monetary policies on economic activity ; increased competition and efficiency resulting from structural reform alleviate inflationary pressures ; and possibly higher fiscal revenues in a context of faster economic growth, both see garcia - cicco, javier, markus kirchner, julio carrillo, diego rodriguez, fernando perez, rocio gondo, carlos montoro and roberto chang ( 2017 ) : “ financial and real shocks and the effectiveness of monetary and macroprudential policies in latin american countries ”, bis working paper no. 668, october. actual and potential, reduce the level of public debt relative to the economy ’ s gdp. naturally, the implementation of structural adjustment policies faces a number of challenges and some resistance is likely to arise, mostly as a result of the redistributive effects, both across time and across sectors, inherently imbedded in them. thus, it will frequently be important to place actions in this realm within the context of a broader - ranging plan that contemplates countering, and coordinated, measures in other fronts. for instance, fiscal and monetary easing may reduce the short - term output costs associated to the economy ’ s process of adjustment in the aftermath of structural reform, while the enhancement of the social safety net and the enactment of other targeted programs may alleviate the costs of transition. let me turn now to mexico ’ s experience regarding the role of policy efforts in the above - mentioned areas in overcoming the macroeconomic challenges faced in recent years. inflationary pressures in

the system and institutions more resilient. however, their use is hardly a guarantee of precluding future financial crises. in designing macroprudential tools, rules are preferable to discretion, as they can be more easily formulated to generate the right incentives for making the financial system more stable. it is key to remain on the alert for possible unintended consequences in the form of distortions and inefficient resource allocation, and long - term risks of factors that may inhibit the development of the system. until now, the prudential policies implemented in mexico have worked well, but we need to continue strengthening financial regulation and the macroeconomic framework so that incentives lead to a deeper, more efficient, and stable financial system. see bank for international settlements ( 2013 ), triennial central bank survey of foreign exchange and derivatives market activity in 2013, april. bis central bankers ’ speeches