Managing Director's Opening Remarks at the IMF's 12th Michel Camdessus Lecture
IMF News, September 18, 2025
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- Published: September 18, 2025
Introduction and speaker
- Event: twelfth annual Michel Camdessus Central Banking Lecture.
- Speaker introduced: Chang Yong Rhee, Governor of the Bank of Korea.
- Personal note: Chang Yong previously served as Director of the IMF’s Asia and Pacific Department and is described as "very much a member of the family."
Governor Chang Yong Rhee — background and accomplishments
- Leadership roles:
- Director of the IMF’s Asia and Pacific Department (provided intellectual leadership in the region).
- Governor of the Bank of Korea.
- Board member at the Bank for International Settlements, where he chairs the committee on the global financial system.
- Contributions highlighted:
- Early emphasis on demographic shifts and other structural forces shaping the region.
- Pioneer in integrating surveillance and capacity development to increase traction of Fund policy advice in the Asia-Pacific region.
- Ahead of the curve in raising interest rates to curb inflation.
- Managed the institution through the credit crunch of 2022.
- Led pioneering work on digital money and AI.
- Quotation: Chang Yong has called central banking an “art,” defined as a judicious blend of economic rigor and pragmatic judgment.
Context and scene-setting — major global points
- Point one: “we live in a world of profound uncertainty, with tectonic shifts in global trade and ongoing geopolitical tensions—all of which can have a major impact on growth and inflation.”
- Point two:
- Capital continues to flow across borders seeking good investments and strong returns.
- Open capital accounts can help channel savings to where they are most needed, improving growth prospects and creating incentives for prudent policy in recipient economies.
- Flexible exchange rates are described as fundamental for helping countries adjust to shocks.
- Point three: Policymakers often face difficult tradeoffs in managing volatile capital flows while preserving macroeconomic and financial stability.
Integrated Policy Framework (IPF) — guidance and tools
- Purpose: gives policymakers guidance on how best to deploy an expanded toolkit—when needed—to help manage shocks, strengthen resilience, and reinforce credibility.
- Tools included in the IPF:
- foreign exchange interventions,
- macroprudential policy measures,
- capital-flow management measures.
- Emphasis and cautions:
- The Framework provides guidance to ensure that any resort to these tools is well calibrated, minimizing unintended side effects.
- Using these tools must never substitute for necessary fiscal and monetary adjustments.
Monetary policy space and institutional considerations
- Observation: some countries may run out of conventional monetary policy space as trade shocks and other factors weigh on growth going forward; this may push countries to consider unconventional monetary policy tools.
- Institutional recommendations:
- Central bank independence is critical.
- Clear communication is critical, and doubly so when resorting to unconventional monetary policy tools.
Framing metaphor and transition to lecture
- Metaphor: central banking compared to golf — one cannot play a whole course with just one club; the skill is to read the course, feel the wind, and choose the right club at the right time.
- Transition: Managing Director invites Chang Yong to deliver the lecture focused on the Integrated Policy Framework.
September 18, 2025 — IMF Communications Department; PRESS OFFICER: Phone: +1 202 623-7100 Email: MEDIA@IMF.org