[6] 1/3  BIS central bankers' speeches  Paradoxically, it will also offer people no refuge from the effects of global competition: isolating oneself from global value chains will raise input prices, make exports less competitive and make the country less attractive to investors, with adverse effects on employment and growth. There is therefore a need for sustainable and effective solutions to today’s challenges.
But here lies a dilemma: although globalisation has increased the need for stronger and better domestic policies, it has also progressively reduced the range and effectiveness of policy tools available to individual countries to respond to the challenges it creates. For instance, globalisation makes it harder for policymakers to regulate and supervise financial markets and prevent recurrent crises.