In short, to be effective, markets must also be fair. And we need to invest in social capital just as we invest in economic capital. That is why the Bank, Treasury and Financial Conduct Authority are undertaking a major review to secure true markets. Markets:  3  4  Adam Smith (1789), The Theory of Moral Sentiments. BIS central bankers’ speeches  •  that are open and transparent;  •  where access extends beyond a privileged few;  •  where all who wish to trade have common information and commonly accessible prices; and  •  where the informational integrity of key benchmarks is beyond question. Some of this will require changes to the way markets work. Some can be delivered by bringing more activities within the scope of regulation. And some may require new codes of conduct. We need a simple approach that recognises that the actions of a few to manipulate, game or profit from unfair access weakens the effectiveness of markets for all. Such actions hold back prosperity. They should therefore have clear consequences. Our approach should deliver true markets which are the greatest source of dynamism, prosperity and progress. Completing this agenda will reinforce the G20’s efforts to rebuild an open and resilient financial system, and in doing so it will support underpin global trade and investment to the benefit of all. Conclusion The UK, the Commonwealth and the world have always drawn inspiration from great Scots.
We must continue to do so if we want to win our economic marathon. Paterson showed us the need for a central bank. Its modern variant is a leading macroprudential institution, well equipped to face the challenges of promoting a balanced expansion. Hume demonstrated the virtues of free trade. The UK, already one of the most open economies, can help lead the development of new EU trade deals as our businesses diversify their markets. Smith showed us the importance of social capital. With a financial system that is a global good and a national asset, the UK is leading financial reforms to build a resilient global financial system with fair and effective markets at its core. And finally Wells and McColgan showed us the enormous pay-offs for hard work, dedication and perseverance. Winning the economic marathon will take similar determination. But the prize of a durable expansion is great and, if inspired by some of Scotland’s many heroes, we should not fail. BIS central bankers’ speeches  5  Chart 1: Average GDP growth (2008–2013) of UK export destinations(a)(b) %  11%  23%  4.5 4.0 3.5 3.0 2.5 2.0 1.5  2012 share of UK exports =66%  1.0 0.5  US, EU, Switzerland, Japan  (a) (b)  6  Commonwealth  Other emerging markets  0.0  Bars show the mean calendar-year GDP growth rate between 2008 and 2013 for all countries included in the groupings. UK export share data is not available for all countries.