The duty of optimizing safety, liquidity, and returns, obviously, will be ever harder. Final remarks In conclusion, central banks in advanced economies are navigating unchartered waters, and thus, the overall results of their stances and their eventual unwinding are difficult to assess. Potential unseen costs from extraordinary accommodation include financial imbalances from excessive risk-taking and high debt.
Market disruptions fueled by these imbalances could be hard to manage. Emerging markets must be prepared to face greater risks and volatility due to potential spillover effects from this scenario. Reserve and fund managers, for their part, will have to use all their knowledge and talent to achieve the best risk and reward relationship possible in such a constantly evolving context.