Dimitar Bogov: A new normal? The global economic expansion, inflation dynamics, financial stability and its meaning for asset management Speech by Mr Dimitar Bogov, Governor of the National Bank of the Republic of Macedonia, at the High Level International Conference on Monetary Policy and Asset Management, Skopje, 16 February 2018. * * * Distinguished guests, Ladies and gentlemen, It is my great honor and pleasure to welcome you to the High-Level International Conference on Monetary Policy and Asset Management. The conference has been organized as a joint effort of the National bank of the Republic of Macedonia and Reinventing Bretton Woods Committee. We are delighted for this partnership whose results have been built into the conference program that is both rich in the topics to be covered and in many prominent speakers to lead the discussions. The title of the conference is “A New Normal? The Global Economic Expansion, Inflation Dynamics, Financial Stability and its Meaning for Asset Management” that comes as a timely event to draw upon the lessons learned of the GFC, to assess the current state of the global economy and its future prospects and advice on the challenges facing central banks and asset managers. This decade has been a truly challenging time for policymaking and asset management. The world has gone through financial, economic and debt crises. We have witnessed major central banks using unconventional policies and ultra-accommodative monetary policy stance.
What did mark the post-crisis period was the financial system reform mainly with respect to the banking industry and reconsideration of central banks mandate with respect to financial stability. Financial turbulence, low yields and divergent monetary policies in the US and the EU caused asset managers to diversify and optimally balance risk and return. The global recovery has strengthened recently, but still there have been concerns with respect to its sustainability. Low productivity keeps clouding the prospects of future economic prosperity and growth, and inflation remains muted in many countries. In addition, there are geopolitical risks, risks of excessive indebtedness and financial sector resilience to potential new shocks. All of these critically relevant issues for the policy makers and asset managers will build in our agenda for today. The program will start with a keynote speech followed by four sessions. Session 1 will cover issues related to the current and prospective conjuncture of the global economy, monetary policy and the future of interest rates. Session 2 will tackle upon financial stability issues, and how well are we equipped to deal with potential turbulence. In Session 3, central bankers and asset managers will put forward their views on strategies for effective risk mitigation and how should asset managers prepare for the “new normal” in the converging monetary policies. Session 4 will focus on South East Europe and the perspectives of the region for European integration and growth. I am particularly delighted that we have prominent speakers and excellent panelists to address the topics of the conference.