We could deliver results, on matters like model approval, on reporting, on the enhanced role of the consolidating supervisor, even on supervisory disclosure. Therefore, I very much support the work which is under way in fora such as CEBS in these areas. After a few months of existence the work done is already very encouraging. And I think that by making rapid and real progress, we can also promote greater convergence beyond the EU, as others may find our experiences of benefit to the wider search for greater international consistency in the implementation of Basel II. 5. Concluding thoughts  Over the rest of the day, we will hear additional perspectives from bankers and supervisors regarding the realities of the work ahead for all of us as we prepare to adopt and implement the new capital framework. In thinking about the preparations that all of us must make, we might recall the words of the Spanish author, Miguel de Cervantes. In his world-renowned novel Don Quixote de la Mancha, he wrote nearly 400 years ago that, “To be prepared is half the victory.” In my remarks this morning, I have tried to highlight why I have great confidence in this victory. It will no doubt require that we continue to dedicate our resources, our staff, and our talent to realise the benefits of Basel II in the coming months and years. Those benefits extend to much more than simply a more favourable capital requirement for qualifying individual banks.
Second, in Switzerland - as, incidentally, also in Japan - the so-called BalassaSammelson effect probably also plays a role. It rests on the fact that the productivity trend in the internationally active part of our economy proved to be much more vigorous than in the less competitive domestically-oriented sectors. It remains to be seen whether, and if so, to what extent, the deregulation of various formerly protected areas of our economy will cause this effect to disappear. The upside trend of our exchange rate development, however, is not really a problem. This is evidenced by the remarkably strong performance of the export sector since 1973 as well as by the favourable trend of our terms of trade which showed an average improvement of 0.8% per year. On the contrary: the appreciation is a clear sign of the confidence placed in our currency. It has a positive effect on prosperity since the purchasing power of a given income in Swiss francs increases in the wake of falling import prices. By contrast, the individual periods of massive and prolonged deviations from the trend proved to be a serious handicap for macro-economic development. No doubt, such shocks are a major stability risk for our open economy even if, fortunately, they are a rare occurrence. Conclusions for monetary policy Let me now turn to monetary policy, focusing first on recent developments followed by some long-term considerations. The pattern of the 3-month Libor rate illustrates how we have proceeded since the euro was launched.