Overall, the combination of lower and less volatile inflation worldwide has reduced inflation expectations and perceived inflation risk and resulted in a lower premium in long rates for inflation uncertainty. I believe that these factors have been key contributors to the lower long-term yields and the flattening of yield curves, particularly in emerging markets.
In particular, Governor Jalan flagged several issues relating to transparency in systems and developing standards and codes, and today I propose to highlight aspects relating to implementation of these standards and codes. There are several reasons for choosing to speak on this subject today.