We should also describe the uncertainty in comparisons of different repo-rate paths. Monetary policy is a more or less continuous process. We normally make decisions on the repo rate and renew our assessment of the repo-rate path every second month. There is always considerable uncertainty over economic developments, particularly in the longer run. But that does not matter so much. We gradually adapt our monetary policy to new information and new forecasts to be able to keep inflation close to the target and resource utilisation at a sustainable level. 10  BIS central bankers’ speeches  Figures Figure 1. GDP calculations in the long-term surveys GDP at fixed prices, index 1970=100 160  160  150  150  140  140  130  130 Outcome LU70  120  120  LU75 LU78  110  LU80  110  LU84  100  LU87 B  100  LU87 R  90  90 70  72  74  76  78  80  82  84  86  88  90  Note. R refers to the reference alternative and B to the balance alternative. Sources: Ministry of Finance and Statistics Sweden  Figure 2.
William J McDonough: Implementing the New Basel Accord Remarks by Mr William J McDonough, President and Chief Executive Officer of the Federal Reserve Bank of New York, before the Global Association of Risk Professionals, New York, 11 February 2003. * 1. *  *  Introduction  Thank you for that kind introduction. It’s a pleasure for me to be here today in my capacity as Chairman of the Basel Committee on Banking Supervision and President of the Federal Reserve Bank of New York. The topics to be discussed at this conference certainly are timely. One need not look any further than recent news headlines to understand why the work of a risk management professional matters so much. Current events remind us that when companies lack the commitment to manage their risks prudently, they will quickly fail to uphold their responsibilities to their shareholders, to their employees, and, ultimately, to the public at large. Those failures are felt not just as a loss of jobs, or investments, or savings, but also as the loss of public confidence in the soundness of our economy. Sound corporate governance only comes about when there is a genuine commitment to do the right thing and to manage risks in whatever form they arise. Risk managers must provide timely, objective and accurate information to their senior management. In turn, senior management and a bank’s board of directors need to ensure that there is an atmosphere of transparency within the firm - one that promotes healthy, disciplined risk taking.