Recent developments suggest that the expose of inflationary pressures is being shifted in general on the falling direction. The higher transmission of the recent increasing trend of the raw material prices in the world market composes a risk in terms of the increasing direction of consumer prices. The performance of exchange rate, of inflationary expectations and the country fiscal position, shall continue to condition the balance of risks in future. 2  BIS Review 122/2009  The expected relaxation of these occurrences in terms of a well-stabilised financial environment shall provide the needed spaces for the growth of monetary stimulus in the economy. BIS Review 122/2009  3
And all these dynamics have been taking place in an era of digitalisation and rapid development of new technologies, in which massive information flows call for an internationally agreed response that allows the benefits of innovation to be reaped while ensuring that the potential risks are mitigated. Together, these developments amount to a new policy frontier that requires the promotion of mutual understanding and broad coordinated policy efforts, in much the same way as when the world first confronted the problem of managing increased trade and financial flows. However, this need for further coordination comes at a time when inward-looking populist and protectionist policies have re-emerged in some countries in combination with a greater emphasis on bilateral relations, somewhat questioning the current multilateral rules-based framework. I am certain that all these topics will feature highly in our discussions over the next two days. But before opening the full conference, allow me to start by recalling the underpinnings of the Bretton Woods agreements, the economic benefits they have facilitated and the limitations that have become apparent over the years. I would then like to discuss why reforms are key to the survival of multilateralism, with some ideas for a way forward to tackle current challenges in an increasingly interconnected and digitalised global economy. The benefits of multilateralism The Bretton Woods agreements of 1944 were the cooperative response to the unilateral actions taken in the early 1930s that led to a period of historic global economic contraction.