Central banks' role more vital than ever amid global crises: Trichet

Jean-Claude Trichet, speaking at the Kautilya Economic Conclave, emphasised that central banks' role is more crucial than ever. Amid global tensions and shocks, they must deliver not just price and financial stability, but broader stability.

Central banks have a more important role than ever in delivering stability amid geopolitical tensions, wars and economic shocks across the world, Jean-Claude Trichet, Chairman of the Group of 30 and former Chairman of the Trilateral Commission Europe, said on Saturday.

Speaking to ANI on the sidelines of the Kautilya Economic Conclave, Trichet said central banks need to focus not only on price and financial stability but also on the broader concept of stability in an increasingly uncertain world.

A Challenging Global Environment

“We are used to being in a world which is extremely demanding with a lot of geopolitical tensions, with a number of wars in the various continents,” Trichet said.

He said conflicts in Europe and the Middle East, along with tensions in Africa, have created a challenging global environment.

“I hope not in Asia, of course, but in Europe, certainly, in the Middle East, and tensions also in Africa, by the way, and tensions that are permanent,” he said.

Trichet said the role of central banks has become increasingly important against the backdrop of uncertainty and recurring shocks.

“So that it was the conclusion of my own panel that central banks in such a universe of uncertainty and tensions and shocks have a more important role than ever in, I would say, delivering stability,” he said.

He said this responsibility extended beyond the traditional mandates of central banks.

“Not only price stability, not only financial stability, but the concept of stability in general in a world which is badly in need of stability,” Trichet said.

Praise for Kautilya Economic Conclave

Speaking about the Kautilya Economic Conclave, Trichet said he considered the event “very, very important” and noted that he had attended it last year as well.

“I’m always impressed by the gathering of luminaries, not only in Asia but in the rest of the world that you see here,” he said.

He also praised the organisation of the conclave, describing it as effective and efficient.

Trichet said the event provided an opportunity to view global challenges from the perspective of an emerging country that remains connected to the wider world.

“I am very, very impressed by the organization, by the effectiveness and the efficiency of the organization and by the fact that we can see all the world problems seen from an emerging country but an emerging country that is connected to the entire world,” he said. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)