4  “Debt and deleveraging: Uneven progress on the path to growth”, McKinsey Global Institute (January 2012). 5  IMF Fiscal Monitor (April 2012), “Balancing Fiscal Policy Risks”. 4  BIS central bankers’ speeches  finances. If one studies Figure 2, there appears to be a connection between good competitiveness and a lower public debt ratio. Figure 2 Relationship between competitiveness and public debt ratio 7  6  Sweden Denmark  5  Finland  Germany  Norway Spain  USA  Ireland  Italy  Portugal  4  Greece  3  2  1  0 20  40  60  80  100  120  140  160  180  Note. The public debt ratio is shown as a percentage of GDP on the horizontal axis. Sources: World Economic Forum 2011 and IMF Fiscal Monitor April 2012. The vertical axis measures the respective country’s competitiveness as defined by the World Economic Forum 2011, 6 while the horizontal axis measures the current level of public debt as a share of GDP. A higher value on the vertical axis means that a country has a better competitiveness. There may, of course, be many factors that affect the public debt ratio, but according to the figure it would appear that countries with good competitiveness also tend to have a lower public debt ratio.
If we look to the meetings organised with some of the regional banking authorities, the initiative on regional cooperation has been welcomed, but I also believe that time has come to carry out concrete measures towards this cooperation. Judging from my personal experience, not as governor but as a banker, I hold the opinion that it would be appropriate to establish a club of regional central banks. The regular meetings of this club would certainly enable the exchange of experiences and the further strengthening of our cooperation. 2/2