As a result, the sustainability of the recovery is in doubt. At the time of the  BIS central bankers’ speeches  1  First Conference, we were seeing green shoots of revival and were hoping that recovery may well strengthen in due course. Since then, growth in emerging markets rebounded but inflation surged. By contrast, recovery in advanced economies was relatively subdued.
Inflation remained largely benign, but nevertheless did climb up from extremely low levels, posing some difficulties. Financial fragilities stayed unresolved. In spite of some deleveraging, risks abounded and were compounded as public sector balance sheets weakened with weaker growth and private sector bailouts. Clearly, new dimensions of financial crisis have emerged since the first Conference.