A decade since the global financial crisis, monetary policies in major advanced countries have shifted towards normalisation. After an unprecedented period of ultra low interest rates, which has driven a search for yield on a global scale, normalisation will be turbulent. Emerging markets have borne the brunt of the adjustment so far, but small open economies more generally are vulnerable.
The world economy too, is undergoing rapid and pervasive structural transformation driven by three powerful secular forces: demographic change, globalisation, and digitalisation. This has led to fundamental shifts in consumer demand, business models, production processes, price-setting behaviour, and financing models. The outcome of this ongoing process is multi-faceted and include rising inequality, more globalized inflation process, and labour market transformation. Against this backdrop, the role of central banks as a pillar of stability is more important, and more challenging, than ever.
Rapid technological progress, driven by the digital revolution, has also transformed many sectors of the economy, not least of which the financial sector. Financial innovations such as distributed ledger technologies, algorithmic trading, and internet-based peer-to-peer platforms are reshaping the financial landscape in a major way. While the opportunities that are being generated are wide-ranging, the challenges for central banks are also substantial. Meeting these challenges and opportunities also require internal organisational changes in terms of both functional divisions and staffing priorities.
This meeting is scheduled to attract 200 participants, drawn from public sector institutions – including central banks, sovereign wealth funds, regulatory agencies and international financial institutions – and private sector groups. The aim of the meeting is to achieve interactive dialogue, with as many participants as possible contributing.