# Managing Supply Shocks: Tools of the Central Bank, Fiscal Capacity, and Building Financial Resilience

- Link: https://www.thailand-business-news.com/banking/337849-managing-supply-shocks-tools-of-the-central-bank-fiscal-capacity-and-building-financial-resilience
- Published: 2026-11-06T00:35:00+07:00
- Author: News Desk

**The policy brief covers discussions on managing supply-side shocks, highlighting
challenges for monetary policy and financial resilience due to geopolitical tensions,
climate change, and fiscal constraints, requiring coordinated policies.**

### Introduction to the Roundtable Discussion

In June 2026, a significant roundtable discussion on “Governing Supply-side Shocks–
Central Bank Instruments and Financial Resilience” was held collaboratively by AMRO,
the Council on Economic Policies (CEP), and the South East Asian Central Banks (
SEACEN) Research and Training Centre. This policy brief aims to synthesize the key
conversations that took place during the event. Amidst an evolving economic landscape
marked by novel supply-side shocks, the meeting underscored the pressing need to
address these phenomena. Particularly, it focused on how geopolitical tensions, 
demographic changes, energy shortages, climate change, and natural disasters increasingly
challenge monetary frameworks, fiscal stability, and financial resilience across
the globe.

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### Navigating Complex Economic Challenges

A primary takeaway from the roundtable is the complex challenges that central banks
face due to the rising frequency and intensity of these supply-side shocks. Balancing
inflation control with sustaining economic growth and investment becomes notably
more challenging in this context. The discussions highlighted that diminishing fiscal
space and increased financial vulnerabilities limit policy effectiveness.

These conditions are exacerbated by the expansion of non-bank financial intermediaries
and rapid technological advancements, complicating traditional monetary transmission.
Addressing these multifaceted challenges demands a policy approach that integrates
monetary and fiscal coordination, enhances financial supervision, and implements
targeted interventions. Such measures are critical to maintaining price stability,
safeguarding vulnerable populations, and mitigating adverse effects on crucial sectors.

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### Contributors and Acknowledgments

This insightful policy brief was a collaborative effort, meticulously prepared by
a team of experts. Julia Bingler, a Senior Fellow at CEP, contributed her expertise
alongside Laura Britt Fermo, Senior Economist at AMRO, and Ashutosh Jaiswal, Senior
Financial Sector Specialist at SEACEN. Their combined experience and knowledge provided
an in-depth analysis of the discussed themes, emphasizing the importance of adapting
to current economic challenges with a nuanced policy framework. This document reflects
their collective understanding and offers valuable recommendations to navigate the
complex landscape of contemporary economic governance in the face of supply-side
shocks.

Source: [Governing Supply Shocks: Central Bank Instruments, Fiscal Space and Financial Resilience – ASEAN+3 Macroeconomic Research Office ](https://www.amro-asia.org/governing-supply-shocks-central-bank-instruments-fiscal-space-and-financial-resilience)