4  BIS Review 10/2005  4. Conclusions  The international economy and national economies are dominated today by the phenomenon of globalization. It is the sign of the times. Globalization not only transforms economies and finance but it also impinges on social and cultural models; it raises the urgent question, especially at international level, of the institutions required to govern the phenomenon.
Rather than providing a detailed review of operations over the past year, I will look at what I think are potential challenges that market participants and policymakers are likely to be confronted with in the period ahead. Given the time constraints, I will focus on the policy implications of some key market developments.