Moreover, although these economies are likely to continue tightening their monetary policies in response to heightened concerns over inflation, they are expected to maintain relatively high growth, albeit at a slightly reduced pace. In China, for instance, consumer prices are rising at a rate of more than 5 percent and authorities are tightening monetary policy.
This is a very complex issue to tackle as there are many different aspects for which tools need to be developed to mitigate the risks. First, it is essential that tools are developed which increase the shock-absorbing capacity of systemically important financial institutions and lower their contribution to systemic risk.