A Time For Resolve And Realism: Speech By Mr Agustín Carstens, General Manager Of The BIS, On The Occasion Of The Bank's Annual General Meeting, Basel, 25 June 2023.

Welcome to the presentation of our 93rd BIS Annual Economic Report.

My remarks will focus on the current state of the global economy, the key risks to the outlook and the roles that all arms of policy must play to meet today's challenges if they are to lay a solid foundation for resilient future growth.

The need for resolute yet realistic policy is a key theme of the Report. Resolve is needed because the global economy is at a critical juncture. For the first time in decades, inflation and financial instability have emerged in tandem. If not addressed promptly, these short-run challenges could entrench themselves as long-run problems. Realism is needed because many of today's short-run challenges reflect an overly expansive view of what macroeconomic policy can achieve. As a result, the long-run challenges are being neglected, with effects that are being felt right now.

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