Figure 8 Monetary policy rates (percent) Eurozone Brazil Mexico  15 12  Canada Chile Colombia  U.K. EE.UU. Peru  9 6 3 0 18  19  20  Source: Bloomberg. 14  21  22  Figure 9 Financial conditions (1) (2) (3) Currencies  Stock markets  (index, 3.Jan.22=100)  (index, 3.Jan.22=100)  U.S.  Eurozone  Nominal 10-year bond interest rates (difference with respect to 3.Jan.22, basis points)  Chile  200  130  120 115  LatAm  120 150  110 110  105  100  100  100 95  90 50  90 80  85 80 Jan.22  Mar.22  May.22  70 Jan.22  0 Jan.22  Mar.22 May.22  Mar.22  May.22  (1) Dashed vertical lines mark the March 2022 Report statistical close. (2) Moving 7-day average of each index. (3) For LatAm, it considers simple average between Brazil, Mexico, Colombia, and Peru. Source: Bloomberg. Figure 10  Inflation forecast (*) (annual change, percent) Headline inflation 14  Core inflation (without volatiles) 14  CPI  12  Jun.22 Report  10  Core CPI  12  Mar.22 Report  Mar.22 Report Jun.22 Report  10  8  8  6  6  4  4  2  2 0  0 19  20  21  22  23  19  24  (*) Gray area, as from the second quarter of 2022, shows forecast.
In the aftermath of the crisis, the configuration of the world economy will be transformed as changes in the pattern of global demand take place, as demands for greater efficiency and lower costs occur, as actions are taken for a reduced role of government in the economy, as new regulatory regimes are being introduced, and as efforts are being undertaken to enhance our capacity to manage systemic financial crisis. Many of these changes will involve cross border arrangements and collaboration. We are all stakeholders with interest in what the post-recovery world will look like. Indeed, the issue of new economic models in the context of these developments is relevant not just to Asia but also for other parts of the world. We have seen how within the short period of less than a decade, the rapid escalation of debt-driven consumption in North America led to chronic financial and economic imbalances that has resulted in a significant economic dislocation on a global scale. Several lessons can be drawn from these developments. The Asian economic model for the future needs to be redefined if the economic progress is to be sustained, taking into account the global changes that are taking place. Asia's success which has been described as a “miracle” has been well documented. It has been acknowledged that “the miracle” is not the result of any one single factor but rather, a confluence of factors. Structural change and pro-growth policies were coalesced synergistically with hard work ethics.