We closely monitor this process and get ready to respond adequately in order to protect the Macedonian economy against severe impacts. Therefore, the cooperation between the National Bank and the commercial banks will be even more important. Thank you for your attention. BIS central bankers’ speeches  3
These include (1) closer integration of global economy through stronger trade and financial linkages, (2) increasingly large and mobile capital flows due to lower costs on cross-border investments, (3) rapid spread of information made possible by advancement in technology, and (4) more pronounced reactions on the part of market participants in times of heightened uncertainties ever since the onset of the global financial crisis. The interplay between market players’ expectations, their self-fulfilling nature and spillover effects paves the way for market exuberance in response to a trigger event. As a clear case in point, the recent ups and downs of financial markets upon new information the market perceives from each round of the Fed’s announcements highlight the role of “shifts in beliefs” on market volatility. What made the post-2008 period particularly vulnerable to such self-fulfilling global turmoil is the current stage of the world economy characterized by lingering structural weaknesses of the crisis countries and limited policy space that reduce the potential of macroeconomic stabilization policy. All of these factors reinforce the role of global shocks and contagion through real linkages as well as expectation channel in transmitting volatility around the world. Notwithstanding the turbulence of the global economy, Asian economies had proven to be resilient in the face of negative external developments, with favourable macroeconomic performance and well-maintained stability during the past period, thanks to the region’s flexible policy framework, robust financial system, and improved risk management as lessons had been learned from the crisis of 1997.