A central bank agenda for renewed globalization But how to do so, when animal spirits are so clearly moribund? Perceptions have changed. There is a better appreciation of the amorphous and endogenous nature of risk. There is also a welcome acknowledgement of uncertainty. Knowing that a black swan might be out there disciplines activity. Humility seldom goes before a fall.
Unfortunately, a newly humbled private sector may only re-engage if it believes that the system is more resilient. To accomplish this, central banks, along with other public agencies, must promote both the necessary market infrastructure and responsible policy. There are four priorities for renewed globalization. First, transparency should be increased so that risk can be identified more effectively and priced more efficiently.