Over the past five years, the threats to free trade and investment have increased. International cooperation is in retreat. Ongoing tensions between the US and China, the Russian invasion of Ukraine and the conflict in the Middle East have put further pressure on globalization. In response to geopolitical developments, countries and blocs more often apply a policy of strategic autonomy. Many firms around the world are reorganizing their supply chains and are considering re-shoring, near-shoring or friend- shoring.

The conference will focus on the current global economic outlook in a context of fragmentation, the lessons learnt from the fight against the recent worldwide surge in inflation; the financial stability implications of monetary policy actions and elevated indebtedness; and the role of digital finance.
A central focus of the conference is as Christine Lagarde Speech in Jackson Hole stated:
“We may be entering an age of shifts in economic relationships and breaks in established regularities. For policymakers with a stability mandate, this poses a significant challenge.”

To what extent should central banks take financial conditions into account when conducting monetary policy? How can the trade-off between current financial conditions and future financial vulnerabilities be integrated in policy design? What are the channels through which fragmentation impacts the real economy and financial stability?

Is high debt posing risks to financial stability or the international monetary system (IMS)? Could the IMS handle potentially large-scale defaults? Can high debt constrain monetary policy normalization? How would increasing trade restrictions affect capital flows to EMDEs?

The Conference will facilitate robust deliberations among policymakers and experts on the formulation and implementation of adaptive economic policies, trade dynamics, and investment strategies in response to prevailing global shocks and disruptions.