The post-crisis recovery of the global economy is uneven. Furthermore, countries are facing unprecedented macroeconomic policy challenges brought about by the consequences of the coronavirus pandemic.
These are the topics discussed at the online meeting of the Club of Central Bank Governors of Central Asia, the Black Sea Region and the Balkans (the Club includes representatives of 26 central banks). The discussion was moderated by the Governor of the Bank of Russia, Elvira Nabiullina.
As noted by participants in the first session of the meeting, the main challenges central banks face in dealing with the consequences of the pandemic could be the spread of new strains of coronavirus, higher inflation fueled by demand significantly exceeding supply and changes in the structure of demand. , as well as the normalization of monetary policy in advanced economies.
The second session, moderated by First Deputy Governor of the Bank of Russia Ksenia Yudaeva, focused on the climate agenda. Although carbon emissions have temporarily declined during the pandemic amid declining economic activity, climate change poses a systemic challenge affecting the well-being of populations as well as the stability and development of the financial sector. More and more governments are announcing their commitment to achieving carbon neutrality and implementing related policies. In this context, financial regulators are actively discussing their role in combating the consequences of climate change. The need for financial regulators to participate in the climate agenda still remains questionable. However, session participants believe that if central banks take into account and monitor climate risks, this will help mitigate their adverse consequences in the future.
Central bank governors discussed key issues of the meeting with representatives of the Organization for Economic Co-operation and Development (OECD) and the Network of Central Banks and Supervisors for a Greener Financial System (NGFS). The views of the academic community were presented during the discussions by Patricia Mosser, program director at Columbia University.
The Club meeting was attended by the governors of the central banks of Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, China, Croatia, Czech Republic, Georgia, Greece, Hungary, Israel, Kyrgyz Republic, Macedonia and Moldova. , Montenegro, Romania, Russia, Serbia, Slovenia and Türkiye. The Club also includes the governors of the central banks of Belarus, Kazakhstan, Poland, Tajikistan and Ukraine.
Preview photo: Victoria Smolina / Shutterstock / Fotodom