Hence, I would coin the main challenges for monetary policy frameworks, and economic policy coordination in general, into three: growth, resilience, prudence. More precisely: growth by free trade; resilience in finance; prudence in monetary policy. Let me elaborate these in turn. 1. Protectionism is the present danger to sustained growth, as shown by the IMF reports recently.
If the protectionist measures were to reduce global growth e.g. by 1 percentage point, it may sound small – but it would in fact amount to a loss of 800 billion euros, which is roughly equivalent to 4 times Finnish GDP.