2  BIS Review 46/2003  Growth and welfare in the long run A monetary policy that leads to price stability creates favourable conditions for economic activities, consumption, trade and investment. But monetary policy in itself cannot generate growth. Other economic policy decisions can, however, especially those that affect people's willingness to work and invest in new businesses. Between 1975 and 1995 Sweden lost its previously so prominent position in the world. These years were also characterised by substantial wage increases and high inflation. Average inflation during this period was 8 per cent per year. We also lagged behind our Nordic neighbours. Had we experienced the same growth as Norway, Denmark and Finland during these years, the standard of living in Sweden today would be about 20 per cent higher. Partly as a result of the economic policies of the 1970s and 1980s, Sweden found itself in serious economic crisis at the beginning of the 1990s. This led to large deficits in both the central government budget and the current account, as well as to unemployment that quadrupled in the space of a few years. It was the largely the lessons drawn from this crisis that formed the basis for the changes in economy policy at the beginning of the 1990s. It was then that price stability was introduced as the objective of monetary policy. As regards fiscal policy, an expenditure ceiling and surplus target for central government expenditure were introduced, while cutbacks were also implemented.
You gave your time freely and shared your ideas selflessly. Thank you. We are also indebted to our partners and trainers who have contributed on a pro-bono basis to IBF’s learning resources – working on impossible timelines to deliver high-quality training standards and study guide materials. There is a final group that I want to acknowledge, the unsung heroes of the IBF story – the past and present staff of IBF. •  From administering the CMFAS examinations to developing new industry examinations;  •  from reviewing and accrediting training programmes to certifying individuals under FICS;  •  the management and staff of IBF have been unrelenting in their commitment to raising industry standards. As we look back at IBF’s 40 years, we can take pride in what it has achieved. •  Some 200,000 participants have benefitted to-date from training courses offered or accredited by IBF. •  Close to 2,000 practitioners have been certified under the FICS Standards. One of the reasons why IBF has done well is that it has renewed itself periodically, to stay relevant and effective amidst a changing environment but always focused on its core mandate of promoting competency in finance. Today, IBF embarks on the next phase of its journey to raise industry standards. Our new mission is to “empower practitioners with capabilities for a robust Asian financial industry”. To equip our finance professionals for the next phase in Singapore’s development as a financial centre, IBF will focus on two new dimensions.