It bears keeping in mind that the Reinhart-Rogoff predictions of a slow recovery are based on historical averages of macroeconomic performances across many different countries at many different times. They highlight a challenge we face today, but from the standpoint of the underlying economic analysis, there is nothing pre-ordained about these outcomes. They are not theoretical predictions – rather, they are reduced form correlations. The economy can perform better than it did in these past episodes if policy responds better than it did in those  7  Reinhart, Carmen M. and Kenneth Rogoff, 2009. This Time is Different: Eight Centuries of Financial Folly. Princeton University Press. New Jersey: Princeton. 8  Reinhart, Carmen M. and Kenneth Rogoff, 2011. Remarks at the 2011 NBER Summer Institute. For similar analyses, see Reinhart, Carmen M. and Kenneth Rogoff, 2008. “Is the 2007 US Sub-Prime Financial Crisis So Different? An International Historic Comparison” American Economic Review: Papers and Proceedings 98(2), pp. 339–344; and Reinhart, Carmen M. and Kenneth Rogoff, 2008. “The Aftermath of Financial Crises” American Economic Review: Papers and Proceedings 99(2), pp. 466–472. BIS central bankers’ speeches  5  situations. In my opinion, maintaining the Fed’s focus on both of our dual-mandate responsibilities is a necessary and critical element of an appropriate response to the financial crisis that can produce better economic outcomes.
Caleb M Fundanga: Growing investor confidence in Zambia’s economy Opening remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Afreximbank/PTA Bank Financing Agreements Signing Ceremony, Lusaka, 10 June 2008. *  *  *  • The President of AFREXIM Bank • The President of PTA Bank • Chief Executives and representatives of Financial Institutions Present • Distinguished ladies and gentlemen I am greatly honoured to be given an opportunity to make these brief remarks at this signing ceremony of two important financing agreements. I wish to extend a warm welcome to all of you gathered here today, particularly those who have travelled from outside the country. I hope that you will not only have a pleasant ceremony today but also have fruitful deliberations at the Euromoney Conferences starting tomorrow at this same venue. I also hope you will find time to explore the beautiful scenery and experience the warm hospitality that Zambia has to offer. Mr President, Ladies and Gentlemen, over the recent past, the Zambian economy has performed relatively well. This is reflected in the overall macroeconomic stability which has been underpinned by positive growth rates in real Gross Domestic Product, low inflation, relative stability in the exchange rate of the Kwacha against major currencies, stable financial sector and improved banking services. However, although incomes have generally increased, the challenge that still remains is that of meeting the basic needs of the majority of Zambians in order to uplift their living standards.