banks in emes struggling with the same questions? in a broad sense yes, although both the questions and answers are slightly different in their case. to understand why, a bit of context is necessary. 7. central banks in emes have historically differed from the advanced economy central bank model in an important way. their mandates have typically extended beyond price stability to supporting growth and to external sector management. they also have responsibility, in varying forms and degrees, for financial stability. in addition, many of them have a development mandate – of building institutions, deepening financial markets, modernizing financial sector infrastructures and furthering financial inclusion. bis central bankers ’ speeches think global, act local 8. given this difference, there was no settled view in emes about the optimal institutional design for their central banks. in the years before the crisis, there was a growing view that the way forward for eme central banks lay in embracing the minimalist model of the advanced economy central bank. now, with that minimalist model itself unravelling, there is a rethink among emes on whether that is the best way forward. they are sensitive to the fact that the issues in the global debate are relevant to them ; but they also realize that they have to adapt the lessons of the crisis to their specific macroeconomic and institutional contexts. 9. what are the challenges confronting eme central banks as they embark on this task? what are the emerging issues? this is what i want to focus on. in particular, i will address five specific issues. i. treading the growth - inflation knife - edge 10. managing the growth - inflation balance is a particularly complex challenge in emes for a number of reasons. by far the most important is the fact that in emes, supply shocks, especially in the food and fuel sectors, have historically been important drivers of inflation. how should monetary policy respond to such supply shock driven episodes of inflation? 11. text book economics tells us that if the supply shock is temporary, monetary policy need not react to it ; on the other hand, if the supply shock is structural in nature, it can lead to generalized inflation – in the first round by the higher input costs, and in the second round through its impact on inflation expectations and wage bargaining. in the presence of excess demand relative to supply, the generalization of inflation could be rapid unless prevented through a forward looking anti - inflationary monetary policy stance. in short, when supply shocks impact the core component of

fairs that were supported by gcsu and sometimes judged by its faculty. we also learned a lot from students at georgia college. we were especially sponges in the presence of the international students, so far from home, whom my mother advised and whom my parents took a special interest in and often invited to church at flagg chapel and to our house for sunday dinner. these students brought the world to us. my sisters and i will also forever be grateful to another group of students, our gcsu babysitters, who were critical in promoting scholastic achievement while exposing us to popular culture, which we had little access to at home. they smuggled in music by earth, wind, and fire, teddy pendergrass, and other artists, rescuing the cook girls from being seen as complete nerds. something else that brought the world to me was the gcsu library, and its amazing librarians, who could assist a curious girl who always had more questions. around my house, many questions from the pesky kids were met with, " ask your mom ", or " ask your dad. " and, if my parents did not know the answer, they said " ask the encyclopedia or the librarian ( at georgia college )! " the librarians and archivists took special pride in preserving the legacy of renowned author flannery o'connor, a resident of milledgeville and 1945 graduate of georgia college for women, as it was known then. i remember walking by an exhibit displaying some part of the o'connor archives each time i visited the library. the georgia college community introduced us to the world in many other ways. allied arts, the local arts - presenting organization, partnered with the university to bring world renowned dance, theater, and music performances, as well as the visual arts, to the college community and the town. betty snyder, whom some faculty and staff might remember, was the indefatigable force and immense talent leading allied arts at the time. her daughter, genie snyder chamberlain, is with us today. the national arts program of the public service organization delta sigma theta sorority also partnered with my mother and the college to bring well - and little - known history makers to campus. in the seventh grade, i was afforded the transformative opportunity as a 2 / 4 bis - central bankers'speeches student journalist to interview three of these figures - poet nikki giovanni ; rosey grier, the actor, football star, and entrepreneur ; and olympian and