The conduct of monetary policy is also complicated by a host of factors which seem to be simultaneously at work: risk of sustained contagion; global capacity constraints; rising food prices; record high international crude oil prices; tensions in inflation expectations; evolution of sovereign pools of foreign exchange reserves; extent of effectiveness of monetary policy; surveillance and risk monitoring systems; and downgrade risks.
It is a pleasure to be here. As I am sure you are all aware, over recent years regulators have looked into almost every corner of the global financial system. Too often they found practices and behaviours that they judged generated unacceptable risks. In response, they have developed a very large and a very complex regulatory reform agenda.