Understanding the interplay between micro and macro aspects on a global scale is vital for addressing challenges, fostering positive transformations, and shaping the trajectories of nations and the world.
Asia School Of Business (ASB) Dean Sanjay Sarma cited climate change as a domain showcasing this interaction.
“Systemic risk to financial systems will drive inflation volatility and many other ill effects that MCBs must react to in the long timeframe. Entire nations and regions are at risk. You were in Langkawi – that beach will be gone. The move of Indonesia’s capital is but an example – others will occur. So here again a convergence between the MBAs’ micro perspective and the MCBs’ macro perspective must converge,” he said.
In his commencement speech at the convocation ceremony of ASB’s Master in Central Banking (MCB) Class of 2023, The Bank for International Settlements Deputy General Manager Luiz Awazu Pereira Da Silva highlighted five major challenges that central banks currently face. He framed these challenges as forks in the road, necessitating navigation by central banking graduates.
“Central banks stand at a crossroads. Five major forks are already with us: (1) the ‘last mile’ for the convergence of inflation to the target; (2) climate change; (3) inequality; (4) digital innovation; and (5) artificial intelligence. The choices that central banks make today about these forks in the road will significantly impact macroeconomic conditions for years to come. Given the important role that central banks play in societies, they will have to consider their implications. To better answer these challenges, you will also have to contribute to fostering a culture of diversity and inclusion within the central banking community,” he said.
Throughout his speech, Pereira underscored the interconnected nature of these challenges, advocating for innovative solutions and diversity within the central banking community. He also expressed confidence in the graduates’ ability to shape policies that tackle these challenges and contribute positively to their field.
He made the statement during ASB’s launch of its first-of-its-kind MCB programme that offers a leading-edge education tailored to central bankers. The convocation witnessed ASB’s Board of Governors Co-Chairs conferring Academic Awards and MIT Immersion Program Certificates upon 14 students from Africa, Asia, and Oceania, followed by the presentation of the Dean’s Award, Best Capstone Project Awards, and the President’s Leadership Award.
