A tricky, but crucial, ex ante question. We do not have a formal agreement as to how these principles are to be handled case by case: nor the circumstances under which emergency liquidity might be made available. Therein lies ambiguity. But equally there is an acknowledgement that the issue might arise, and the Standing Committee’s remit includes decision making and implementation in relation to any emergency liquidity as well as a clear statement of the roles of the parties. Internationally and globally the situation is more complex and diverse. In some countries the subject is still taboo - both process and policy decisions. This might be due to a lack of clarity of roles and powers. To my mind this transparency deficit is not conducive to systemic confidence, either within given jurisdictions or, on a global basis. But whilst there may be validity in a lack of transparency in relation to the actual policy decision certainly ex ante - there needs, in my view, to be less fear in relation to more transparency of the processes that surround it. There will of course always be varying views on when market or institutional failures should be allowed to play themselves out, and when all else has failed, intervention is justified. Prior clarity here might provoke market gaming to the detriment ultimately of  4  8  Charles Kindleberger, “Manias, Panics and Crashes: A History of Financial Crises”. John Wiley and Sons (2000). BIS Review 5/2004  the taxpayer.
How should we ensure the integrity of the advisers and avoid groupthink? I welcome more research on these and other issues related to the role of the staff. Good decisions require qualified people, an appropriate incentive structure, and a good decision-making process. In addition, good decisions become more effective if they are communicated well. Transparency generally improves both the quality of communication and the decision-making process. My ambitious goal is that Norges Bank shall be at the forefront in terms of communication and decision-making processes. Thank you for your attention. 8  BIS Review 132/2008  BIS Review 132/2008  9  10  BIS Review 132/2008  BIS Review 132/2008  11