Nevertheless, the transmission of global monetary conditions to emerging economies is unavoidable given the open nature of the economies and the increasingly open and interconnected financial markets. To fully appreciate the changes in the global landscape since the Global Financial Crisis and the challenges and risks they entail, let me suggest five important developments that emerging market economies have been facing in conducting domestic monetary policy. First, global financial markets are more interconnected than before. Financial openness in 1/5  BIS central bankers' speeches  the Emerging Asia, as measured by the sum of assets and liabilities in the international investment position to GDP, has grown from around 800% of GDP to now more than 1000% of GDP. Emerging Asia cannot escape the vagaries of the financial markets around the globe. Second, global capital flows have increased in size and volatility. Cumulative non-resident capital flows to the region have reached USD2.1 trillion in 2016, compared to only USD400 billion in the period prior to the Global Financial Crisis. More importantly, capital flows have also become more fickle than before. Debt flows now contribute to 66% of capital flows. These flows are short-term in nature and carry higher propensity of reversals. Emerging markets had never experienced such phenomena before. Third, the volume of global foreign exchange trading has grown by more than four times in the last 15 years alone. The global foreign exchange market has become bigger, more complex and increasingly disconnected with economic realities. Today, exchange rate overshooting is the norm rather than the exception.
The restrictions on mobility have affected small businesses more than large firms – which typically have recourse to digital platforms and are able to implement remote working. The pandemic has also sensitised us to how vulnerable we all are to the forces of Nature. If we do not act decisively to limit the increase in global temperatures, we are putting at risk the future of our children and grandchildren. It is perhaps this realisation that has helped to make 2020 a record year for climate pledges – despite being in the midst of the Covid-19 pandemic and economic crisis. The number of commitments by governments and businesses to reach net zero emissions has almost doubled in less than a year. The crisis has also demonstrated the power of technology to help find solutions to difficult problems. From making vaccines to contact tracing, from online learning to telemedicine, technology has been at the forefront in the fight against Covid-19 and its effects. Likewise, technology can play a potent role in shaping the post-Covid world. FinTech in particular has great potential to be a force for good. 1 / 10  BIS central bankers' speeches  We can bring together the power of finance and technology, to help create a more inclusive society and a more sustainable planet. FINTECH FOR AN INCLUSIVE SOCIETY – INDIVIDUALS Let me begin with what FinTech can do for an inclusive society, using Singapore as an example. This is the vision: every citizen and every enterprise digitally enabled and financially included.