BIS central bankers’ speeches  testing, disclosures to enhance transparency and moving OTC derivatives to central clearing and settlement mechanisms for reducing the systemic risk in derivative markets. III. Systemic risk – the elephant in the room  Measuring and analyzing systemic risk is at the core of ensuring financial stability. It is, therefore, important to understand what systemic risk is.
Periods of pretty high terms of trade lasted for some years in several instances – as shown by the five-year average – but so far they have all been followed by a return to trend, or even a fall well below trend. 1  Gillitzer C and J Kearns (2005), “Long-term Patterns in Australia’s Terms of Trade”, RBA Research Discussion Paper No 2005–01.