exporters  -15  -9,9  -2,4  0  -0,9  U.K.  10  25 20  16,8  GDP growh in 2011-2015: 6.7%  U.S.  15  Eurozone  20  22,1  (*) Regional aggregates reflect simple averages. Sources: BIS and IMF. 7  Figure 3 Terms of trade (index, 2000=100) 200  200  180  180  160  160  140  140  120  120  100  100  80  80  60  60  40  40  80  85  90  95  00  05  10(f)  (f) Forecast. Source: Central Bank of Chile. Figure 4 Net international investment position (percentage of GDP) (1) 100  100  75  75  50  50  25  25  0  0  -25  -25  -50  -50  -75  -75  -100  -100 97  01  05  Institutional Banks Companies and households (1) GDP at constant exchange rate (index, September 2010 =100). (2) Net international investment position. Source: Central Bank of Chile.
Philipp Hildebrand: The virtues of flexible financial markets - a central banking perspective Summary of a speech by Mr Philipp Hildebrand, Member of the Governing Board of the Swiss National Bank, at the CFA Institute Annual Conference, Zurich, 22 May 2006. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch)  *  *  *  Summary Rapid technological change and market liberalization have been the driving forces behind the remarkable evolution of global financial markets over the past three decades. The consequences of this development include a geographic rearrangement of global capital markets, a fast pace of product innovation and changes in the nature and composition of financial market participants. The benefits associated with today’s flexible financial markets are manifold. Financial markets have become much more efficient in allocating capital. New products enable a better distribution of risks and the liquefaction of previously illiquid assets. They have also increased market transparency. As a result, modern financial markets facilitated innovation and likely enhanced economic growth. Moreover, they have contributed to make economies more resilient to shocks. These extensive benefits notwithstanding, modern financial market also entails new risks. These risks tend to elicit calls for increasingly far-reaching regulation. While some regulation may indeed be required to guarantee the integrity of financial markets, the threshold for such regulation should be set high.