We Are Living in a World With Interconnected Balance Sheets, Says BIS' Shin

The video discusses the evolution of emerging markets since the Asian economic crisis of the late 90s, highlighting changes in borrowing practices and the role of global investors. It examines current financial conditions, including central bank policies and their impact on bond markets. The discussion extends to the effects of trade wars and exchange rates on emerging markets, emphasizing the interconnectedness of global financial systems. The video concludes with an analysis of risks and stability in financial markets, noting the importance of understanding leverage and investor behavior.

How do interconnectedness and spillover effects influence monetary policy decisions according to the discussion?

What role does the Federal Reserve play in the context of global economic conditions as discussed in the text?

What are the potential risks associated with the normalization of central bank policies after a long period of low interest rates?

In what ways have the risks in the banking sector changed since the 2007 financial crisis?