It is my great pleasure to welcome you to the 2019 Bank of Korea International Conference, held in Seoul on June 3-4. The theme of this year’s conference is “Global Economic Linkages: Impacts and Policy Implications.”
The global financial crisis of 2008 showed that financial instability in a country can negatively affect other countries through real as well as financial linkages. Exploring the impacts and policy implications of such linkages is very important and timely considering the recent shifts in major countries’ economic policies, changes in the global value chain, and escalating protectionism.
With expanded trade and greater integration of the world economy, a system has developed whereby final goods are produced through intermediate inputs from various countries. This expansion of international trade linkages makes it easier for economic shocks to be transmitted quickly and widely across borders. Furthermore, the greater interconnectedness of financial markets facilitates the transfer not only of economic shocks but also of financial instability from one country to another. Changes in monetary, fiscal, macroprudential and trade policies in one country can also have unintended effects on other countries.
Against this backdrop, prominent scholars and policymakers from around the world are gathering in Seoul to discuss trade and financial linkages, policy spillovers, and implications for macroeconomic policy. I hope this conference will provide a meaningful platform for discussion on these important topics.
The conference will also include a special session for the Federal Reserve Bank of New York and Bank of Korea. This will be a valuable opportunity for the two organizations to share their experiences and views and enhance their cooperation.
I would like to express my sincere gratitude to all conference participants, and in particular to Professor Thomas J. Sargent for his dedicated efforts and valuable contributions as a distinguished advisor.
I bid you all a warm welcome and wish you an enjoyable and memorable stay in Seoul.
- Juyeol Lee
- Governor
- Bank of Korea
