Policymakers should strengthen core financial markets so they can absorb future shocks without amplifying themWe must strengthen the resilience of core marketsGreater absorbtion of government debt has come with greater fragilityWhen shocks become more frequent, underlying growth is weaker and the succession of shocks leads to a higher level of gov't debtIt's much harder to use the balance sheet to cusion a severe downturnWe are seeing volatile marketsMarket moves are some way from normal but we are not seeing illiquidity or stressWhen he's talking about core markets, I take that as meaning gilts and market plumbing.What's striking is the sudden urgency. The rising in yields has sharpened central bankers to their core roles and highlighted the risks they need to manage.10-year gilts are up 4 bps to 5.49% today. This article was written by Adam Button at investinglive.com.