As a result of the latter, the balance sheets of all major central banks have increased significantly. One of the major challenges in the years ahead will be the differentiated normalisation of unconventional monetary policies in advanced economies. Many have argued that in this process central banks in advanced economies should be mindful of the spillovers to the rest of the world.6 There have even been calls for a fundamental strengthening of international  4  This has been particularly visible in the rise of the renminbi as an invoicing and settlement currency for China’s international trade: while in 2010 almost none of China’s trade in goods and services was invoiced in renminbi, in 2014 this figure has risen to almost 25%. Similarly, the issuance of renminbi-denominated (“dim sum”) bonds has grown by a factor of about 30, albeit from a very low level. 5  For a discussion of the international role of the renminbi, see Eichengreen, B., and Kawai M. (2014), “Issues for renminbi internationalization: an overview”, Asian Development Bank Institute Working Paper, No 454, January. On recent trends in the IMS, see the latest ECB Report on the International Role of the Euro, Frankfurt am Main, 16 July 2014. 6  See Rajan, R. (2013), “A step in the dark: unconventional monetary policy after the crisis”, Andrew Crockett Memorial Lecture, BIS. 2  BIS central bankers’ speeches  monetary policy coordination. I would like to take this opportunity to elaborate on my views on this discussion.
At the same time, in a highly interlinked global economy consensus-building concerning the transmission of spillovers is crucial for dealing with shocks that affect substantial parts of the global economy. Moreover, the IMS should also provide incentives to foster appropriate preventive action that renders economies more resilient to shocks, and provide the necessary standards and infrastructures to make global markets work better as well as make coordination possible when warranted. This is already a robust policy agenda. 6  BIS central bankers’ speeches