Preserving Macroeconomic and Financial Stability in Small, Open and Financially Integrated Economies (SOFIEs)

Venue :Online Seminars
Host Name :The SEACEN Centre
Date From :03 Nov 2022
Date To :03 Nov 2022

Descriptions


Preserving Macroeconomic and Financial Stability in Small, Open and Financially Integrated Economies (SOFIEs)

Date: 3rd November 2022 (Thursday)
 

Time: 10:00-11:00 KUL time (GMT +8)
 

Speaker: Már Gudmundsson (Former Governor of Central Bank of Iceland) 
 

Summary: This contributes to the ongoing discussion on how SOFIEs can best deal with the macroeconomic and financial stability challenges arising from cross-border financial integration. The optimal policy response will vary between economies depending on the depth and level of development of their financial markets, and on the degree of the most relevant financial vulnerabilities. AE and EME SOFIES are, as groups, different. For most EMEs and at least for some of the smaller AEs, the use of more policy tools and reformed policy frameworks are needed compared to the pre-GFC orthodoxy to deal with the shocks, the complexities and the difficult trade-offs involved. The paper then analyses policy options regarding structural reforms and resilience, exchange rate arrangements, stabilisation tools and policy frameworks.