In my remarks, I intend to address three aspects of globalisation and their potential impact on central bank policies: •  First, I will discuss to what extent globalisation may affect the conduct and effectiveness of monetary policy in controlling inflation and influencing domestic economic activity. Or: does globalisation alter the job of a central bank, and if so, how? •  Second, I will explore the impact of globalisation on the functioning of financial markets, which is of course a particularly pertinent issue during the ongoing financial market turmoil, and its potential implications for financial stability. Or: did we sow the wind of financial globalisation, only to reap the whirlwind of market turbulence? •  Third, I will briefly seek to shed some light on links between monetary policy and financial stability, and how globalisation may affect this interrelation. Or: did past central bank policies worldwide play a part in building up imbalances in global financial markets whose correction and unwinding we are witnessing at present? II. Globalisation and monetary policy  In recent years, it has been argued that globalisation has had – or is likely to have – significant implications for the conduct and effectiveness of monetary policy in controlling inflation and influencing domestic economic activity.
Financial institutions should provide easy access to funds to reduce cost of doing business. The multiple drivers of informality should be tackled through integrated policy packages that promote a gradual transition to formal activities. Ladies and gentlemen, this is the challenge I give all stakeholders that are involved in skills development, youth empowerment and development of MSMEs. Thank you. BIS central bankers’ speeches  3