In particular, the Riksbank follows a direct inflation targeting strategy in which monetary policy is almost exclusively guided by inflation forecasts of about two years ahead. In contrast, the Eurosystem relies on two pillars, thereby focusing on the medium term, and does not give such a predominant role to inflation forecasts as the Riksbank. In our view, the Riksbank has achieved high standards with regard to transparency and accountability, as is for example evidenced by its comprehensive quarterly inflation report. In more recent years, the Riksbank has enjoyed a fair measure of success in gaining control over domestic price developments, as supported by its strong performance in fighting inflation, and in overcoming a deep recession in the early 1990s. Its track record also demonstrates that price stability in Sweden was given a high priority long before this was formally recognised by an amendment to the Riksbank Act at the start of 1999. The Eurosystem’s stability-oriented monetary policy strategy rests on two pillars, which are both important when the Governing Council discusses monetary, financial and economic developments at its biweekly meetings. The first pillar, which is a prominent role for money, takes into account the essentially monetary origins of inflation over the medium to long term. It recognises that empirical studies show a stable long-term relationship between money and prices in the euro area. Therefore, in the euro area, monetary developments constitute an important guide for the conduct of monetary policy and it is essential to analyse and monitor the development of monetary aggregates closely.
And, going forward, are we thinking hard about how technological change will influence incentives, behavior and culture? We’ll hear these issues discussed in several panels today. These issues require thoughtful reflection by the industry. The need for reflection, though, is not limited to boards, or even to banks. Regulators and bankers alike can benefit from such a habit. In that vein, I want to share with you an everyday checklist proposed by Ignazio Angeloni of the European Central Bank.7 He has posed six questions that seek to make responsibility for culture both individual and routine: Are you doing what you promised to do? Are you using your best knowledge and intention in doing it? Are you doing what public authorities, superiors, colleagues and business partners expect you to do, and if not why? Are you conforming to the mission and the values of your company, as they are publicly 2/3  BIS central bankers' speeches  stated? Will your actions enhance public confidence in your company and in the financial sector? Finally, and crucially, would you behave similarly if your actions were publicly observed? I suspect that while seemingly simple, the discipline of asking ourselves these questions on a regular basis and answering them thoughtfully and honestly may be more challenging, thought provoking and effective than one might initially think. I thank the staff at the New York Fed who put together today’s program, and their colleagues who are in the audience and watching today.