difficulties in the short term, but in the medium and long term, it enhances the efficiency of resource allocation and accordingly has positive impacts on employment and economic growth. and if economic resilience is strengthened by structural reform, we can avoid excessively accommodative macroeconomic policy and thereby minimize its negative side effects. ladies and gentlemen, i have talked about the challenges and policy tasks that small open economies currently face. it seems that monetary policy measures alone cannot resolve these multi - faceted difficulties. i would stress that we need to pursue efficient mixes of monetary, macroprudential and structural reform policies, as well as strive for international cooperation. i hope that today ’ s conference serves as an excellent venue for lively discussion and the free exchange of ideas regarding how to address these challenges. thank you. bis central bankers ’ speeches

when individual european countries secure fiscal consolidation through a recovery of their respective growth trends. bailout of heavily indebted countries ( billion euro ) greece 1st round ireland 2nd round1 ) portugal eu imf total note : 1 ) including those not carried out in the first found source : eu commissions at another point, a global financial crisis originating in the us and the euro area and the consequent policy responses in advanced countries have negative spillover effects on emes through the financial and real channels. the export momentum of emes weakened at the time of the financial crisis due to sluggish import demand in major countries amid the economic slowdown. in addition, as uncertainty over economic conditions mounted due to the global financial market unrest, the sentiment of economic agents turned sour and, consequently, consumption and investment also weakened. bis central bankers ’ speeches exports of asian emes1 ) note : 1 ) period - on - period annualized rate stock price volatility of asian emes1 ) note : 1 ) standard deviation of daily volatility of stock price indices of 50 major enterprises in emes source : imf source : bloomberg in addition, as the burgeoning global liquidity created by the monetary easing of the central banks in major countries, exchange rate volatility in emerging market countries increased and international commodity prices such as those of oil rose sharply. government bond yield ( qe1 ) frb ( qe2 ) $ 1, 725 purchase of agency ~ 2010. 3 billion securities, mbs, etc. 2010. 11 $ 600 purchase of long term ~ 2011. 6 billion treasury securities 2011. 12 € 489. 2 oil price providing ltro1 ) billion ecb 2012. 2 € 529. 5 providing ltro1 ) note : long - term refinancing operation source : bloomberg the role of the asian economy is important for the recovery and sustainable growth of the world economy in the future and global financial resources, in this respect, should flow into emes with relatively high productivity and a heavy demand for capital. emes have been less affected by the crisis than advanced countries and are relatively sound fiscally. therefore, they have sufficient latitude in macroeconomic policy to promote growth in the short - term. in addition, although asian emes achieved high growth thanks to export - oriented strategies, intraregional trade continued its upward trend even after the financial crisis as countries turned to stable growth policies through domestic demand expansion. bis central bankers ’ speeches government