So far, the repricing of assets and the unwinding of positions have been quite orderly and the financing of the US current account deficit continues to be smooth. In broad terms, bond yields have increased, equity prices have declined, and the US dollar has appreciated in nominal effective terms. In terms of policy, the key issue in the global economy now is how to manage the transition to a higher interest rates environment so as to safeguard economic stability in view of the continued firm growth. Another is the management of the risk that higher oil prices might affect the global recovery. And the third is the issue of addressing the major global imbalances without creating serious volatilities to the financial markets. Let me turn now to the domestic economy. This year a theme that has kept recurring in my presentation of the Thai economy is that of risks and adjustment. This is to say that, for Thailand, this year has been a year of greater risks and the key theme has been adjusting to risks as the global economic and financial environment has become less helpful. The key external pressure an the Thai economy throughout this year has been the higher oil prices, the higher global interest rates, and the potential impact an our exports of a slowing Chinese economy. This year, we also have our own domestic challenges.
We must also recognise that there will be occasions when interventions are not yet needed, as emerging risks are not yet systemic in nature. To return to our analogy, a good doctor might decide not to start medication, but instead simply monitor a patient’s general health to judge better how to improve it. Macro-prudential policy should be ready to adapt to change, allowing the economy to expand and innovate safely. Change always brings with it opportunities and risks and so our macro-prudential framework will need to evolve. To overuse the health analogy once more, doctors need to adapt. A doctor in the 1960s, for example, would never have had to think about the health effects of vaping. Challenges that lie ahead Ten years after establishing the FPC, we have reached the point where we have both made the case for macro-prudential policy, and built a macro-prudential framework designed to ensure the sector is resilient to stress. In other words, we have pulled together the skeleton for a healthcare plan and convinced the patient that they need it and that it needs to be updated regularly. These are important achievements. Indeed we need to make sure we hang on to them even as memories of the global financial crisis fade. But we need to decide the plan for the coming months and years too. Recent shocks – the  Covid pandemic, and more recently, Russia’s invasion of Ukraine – and structural changes to the financial system have reaffirmed that our work is not yet done.