As the conduct of monetary policy becomes more challenging it also obliges policymakers to devote more care to the process of understanding how the changes at the global level affect the balance between opportunity, risk and uncertainty, so that we have the flexibility to respond efficiently and in a timely manner to any crisis to the extent that domestic policies will allow.
Transmission mechanism Also, our understanding of the transmission mechanism of monetary policy, with respect to cross border markets will become increasingly important in the globalized world Already, the BIS is tracking global flows and probably has access to more comprehensive data on cross border financial flows in the Caribbean than we do on the region with respect to our regional neighbour’s data.