Public policy is conducted at the national level, but at the same time, globalisation of economies, often driven by technology, is a reality, and the global macroeconomic environment is an outcome of national policies in a framework of nebulous global governance arrangements.
The challenge for national central banks is to find space for the conduct of their own policies in an increasingly inter-dependent global economy. Macroeconomic policies and the financial sector It is tempting to debate the pros and cons of developments in the financial sector without full recognition of the macroeconomic environment and of the functioning of product and factor markets.