with possibility of unintended consequences and the emergence of yet more risks. fiscal and monetary policy, two of the most important macroeconomic policy tools, are reaching a point where they have very limited room to influence the desired growth and employment outcomes. this raises a few questions – have we reached a point where macro economy becomes a dismal science? have we reached a macro - policy trap? what have we missed in the design of these policy tools? these are very important questions. they warrant a deep rethinking of the underlying basis of the discipline, and a re - examination of the many principles that we have been relying on all these while. to apply the same solution over and over again is certainly not a viable option. the international monetary system fosters imbalances and volatility of capital flows and exchange rates since the departure from the bretton woods system, the international monetary system has evolved to reflect on - going changes in global economic developments and economic thoughts. the architecture of our current monetary system is characterised by flexible exchange rate regimes, free capital flow and independent monetary policy. this global landscape has expanded the cross - border exchange of goods, services and capital. importantly, the transition to more market - based foreign exchange rate system has accorded policymakers greater control over domestic policies, accelerated the development of financial sector, and, ultimately, boosted economic growth. nonetheless, this international monetary system also has obvious shortcomings. in the postbretton woods period, the frequency of banking and currency crisis has increased dramatically with large output and employment losses. at the centre of this international monetary system, policy adjustments in major economies have led to significant volatility in the financial markets. the initial hint of tapering by the federal reserve in may 2013 resulted in large reversal of capital flows and exchange rate over - shooting in emerging economies. today, the complexity of managing an economy is compounded by the impact of global shifts in capital on domestic financial markets and real economic activities. given our high degree of openness, malaysia was not spared by these developments. for example, global concerns over monetary policy normalisation by the federal reserve continue to impact the ringgit. ringgit volatility since september 2014 has exceeded levels in previous episodes of sharp adjustments such as the european sovereign debt crisis and taper tantrum. the weak ringgit performance was further amplified by the misperception about malaysia ’ s reliance on commodities and our position as a net oil exporter. despite malaysia ’ s lower

code of conduct and principles was issued last year by bank negara malaysia. in a more positive light, there is evidence that public trust in banks around the world is improving. this is something we can build upon. the right place of finance is to be the catalyst for the economy. as guardians of public trust, bankers must protect the system against any threats. this means protecting against abuse, misconduct and exploitation. no banker should tolerate misselling of products to customers which are not suited to their needs. no banker should tolerate charging excessive and hidden fees to unsuspecting customers and use these fees to excessively enrich themselves. no banker should tolerate unethical and illegal behaviour of a fellow colleague. no banker should tolerate any wrong doing or misconduct. the currency of bankers is not money but trust. loss of trust is calamitous for the profession. 1 / 4 bis central bankers'speeches for us in malaysia, our approach to ensure professionalism, trust and confidence rests upon a two - pronged strategy. the first is to create a system that upholds the values of honesty and integrity. professional organisations such as aicb play a crucial role in this, with the chartered banker accreditation as a tool. the syllabus for this qualification places importance on ethics and professional standards. the requirement for fresh graduates to undergo an induction course on ethics is also a good starting point. there are other initiatives in store, we will step up efforts to ensure that the roles, responsibilities and accountabilities of leaders of financial institutions are clear and transparent. to this end, consultations with the industry will be conducted this year on proposals to sharpen accountability of individuals holding senior roles. the second complementary strategy is to create an enabling environment to empower financial institutions to make informed and sound hiring decisions. effective 1 july 2018, it will be a requirement for financial institutions to screen all new hires, except those performing ancillary functions. this includes their employment history and criminal records. financial institutions will be required to keep proper records related to employees and to provide the required information when requested by another institution. this will guard the system against disreputable staff and enact barriers against potential threats to the integrity of the system. as guardians of the system, bankers need to look at these requirements as useful enabling tools or defenses that help with their mission to successfully protect the integrity of the system. guardians of knowledge and wisdom the complexity scientist, samuel arbesman in his study of how knowledge develops,