Five specific challenges were discussed, namely : (a) managing national monetary policy decisions in a globalizing environment, given the growing complexity in the interactions between external developments and domestic variables, (b) redefining the mandate of central banks, given the pre-crisis attraction of inflation targeting and the post-crisis debate on the role of central banks in relation to asset prices, (c) responsibility of central banks towards financial stability, particularly beyond the conventional Lender of the Last Resort (LOLR) function, (d) managing the costs and benefits of regulation, in view of the difficulty in drawing a fine balance between regulation and financial innovations, and (e) the autonomy and accountability of central banks, particularly during exit from the crisis.
The Conference had brought together central bankers, academicians, policy makers, financial regulators and supervisors and private sector experts to a common platform. There were very important lessons to take from that Conference and that is why we are here to repeat it as a biennial event.