This could happen for a number of reasons - related to different cyclical positions, different fiscal positions, or as a result of external shocks or structural changes. The famous Maastricht criteria for sustainable convergence that are to be met, according to the Treaty, before a country qualifies for the Single Currency were designed precisely to reduce the risks of tensions of this sort arising after the start. I should like to think that the political leaders across Europe, who will take the decisions, all really appreciate the crucial importance of sustainable convergence to the success of the venture and that they do not see it just as a technical obstacle to their wider aspirations - I should like to think that. So, Mr. Chairman, some difficult decisions lie ahead. The period up to your next biennial dinner will be momentous. But that should not obscure the fact that our immediate economic prospects remain encouraging. I do not know of any serious economic forecaster who does not expect the economy to continue to grow over the next two year, or unemployment to continue to fall. The challenge is to ensure that we can still say that in two years’ time. BIS Review 5/1997
Whether for time-sensitive transactions as part of the often intricate choreography of global financial stability operations or for more routine official payments, the insights developed and experiences with the policies, environments, and constraints of other central banks provide the Federal Reserve with enhanced capabilities to formulate and execute policies. The dedication, skill, and expertise of this staff transform on a daily basis the abstract principle of safe, confidential, and reliable service provision into an operational reality. So, to the current and former staff here today, I pay tribute to your service to the global official community, to the Federal Reserve, and to the U.S. You are worthy heirs to the legacy of Benjamin Strong, Montagu Norman, and other early giants of central bank cooperation. The evolving risk environment in cross-border payment operations Even as we hold this commemoration and celebrate the legacy of central bank cooperation in this most tangible of forms, the evolving risk environment in cross-border payment operations requires us as central bankers to continually rededicate ourselves, in word and deed, to the mission of providing safe, confidential, and reliable services to each other. As we are all no doubt aware, risks in cross-border payment operations have undergone major shifts in recent years, with cyber threats in particular emerging as one of the most critical security issues facing our community.