In the longer term, developments are more open and will be shaped not least by the policy responses under way. I would like today to discuss the role of financial innovation in the economy and its implications for monetary policy.
The role and performance of services and financial services in the economy In the last few decades we have experienced a sustained trend towards services as a share of GDP at the expense of manufactured goods (in the OECD services account for more than 70% of GDP). 1 Financial services have been an important part of this trend.