In the last decade industrial countries’ gross external financial assets and liabilities more than doubled in proportion to GDP, reaching 440 per cent at the end of 2007 (Figure 3). Financial market development in the emerging economies has also been dramatic.
Making inflation low and stable was the outcome of a combination of long-term and short-term policies over the past decades. Keeping it there remains the objective, while an appropriate combination of long-term and short-term policies will provide the instrument to achieve it. I thank the organizers of this event once again for giving me this opportunity and thank you for listening.