This policy brief summarizes the discussions held during a roundtable on “Governing Supply-side Shocks – Central Bank Instruments and Financial Resilience” convened by AMRO, the Council on Economic Policies (CEP) and the South East Asian Central Banks (SEACEN) Research and Training Centre in June 2026.
One of the key takeaways from the discussions is that the growing frequency and intensity of novel supply-side shocks—arising from geopolitical tensions, demographic shifts, energy shortages, climate change, and natural catastrophes—pose increasingly complex challenges for monetary policy, fiscal sustainability, and financial resilience. Central banks therefore face difficult trade-offs between containing inflation and preserving economic activity and investment. These trade-offs are heightened as diminishing fiscal space, widening insurance protection gaps, and heightened…
