We have also required banks to improve their corporate governance by setting up a Board level committee, chaired by an INED, to oversee corporate culture and to ensure that their compensation arrangements are aligned with the culture and values of the bank. These efforts are ongoing and I am afraid that it is not a mission that can be accomplished overnight. So for the time being, there is still a need for supervisors to be around and so you don’t really have to worry that I will be out of a job any time soon. 19. Again, my apologies to those of you who have been attracted to this dinner because of the title and did not get too much joy from what I have said. But don’t lose hope yet, as some of you may still be able to find or invent a time machine that can turn the clock back to the “good old days”. I am sure that bankers in Hong Kong would be very willing to pay a high price for such machine. 20. Thank you very much. 1 Charles Goodhart, (2017) “Has regulatory reform been misdirected?”, Journal of Financial Regulation and  Compliance, Vol. 25 Issue: 3, pp.236–240. 5/5  BIS central bankers' speeches
Norges Bank only has one instrument, and the interest rate alone is too crude an instrument. Hence, financial regulation, the tax system and fiscal policy have to contribute more to promote other economic policy objectives. In the past year, very low key rates have been necessary to prevent inflation from falling too far. Over the past decade, inflation has remained at around 2 per cent, or close to, but somewhat below the target of 2.5 per cent. Division of roles in economic policy The division of roles in economic policy will now be put to the test: •  Monetary policy steers inflation in the medium and long term and can contribute to smoothing fluctuations in output and employment. •  The central government budget – growth in public expenditure – influences the krone and the size of the internationally exposed business sector in the medium term. This is important because the growth capacity of the economy – the fundament for learning, innovation and development – can be undermined if the portion of the business sector exposed to intense international competition is reduced. •  Wage formation and economic structures and incentives lay the basis for the effective and efficient use of labour and other real economic resources, and for economic growth. With concurrently lower inflation and activity prospects, Keynesian demand management was an appropriate policy response to the crisis in autumn 2008. Norway has room for manoeuvre since there is confidence in state finances and inflation expectations are firmly anchored.