BIS central bankers’ speeches  5  Figure 1  World output (*) (index, second quarter 2007=100)  Unemployment rate (*) (percent)  120  120 10  10  110  110  8  8  6  6  4  4  2  2  100  100  90  90  07  08  09  10  08  Jul. 09  Jul. 10  Jul. Emerging economies  Developed economies  (1) Regions weighted at PPP. Developed economies include: Australia, Canada, the Eurozone, Japan, Sweden, Switzerland, the U.K. and the U.S. Emerging economies includes: Argentina, Brazil, Chile, China, Colombia, Hong Kong, India Indonesia, Israel, Malaysia, Mexico, the Philippines, Saudi Arabia, South Korea, Russia, Singapore, Taiwan, Thailand and Venezuela. (2) Regions weighted at PPP. Developed economies include: Canada, the Eurozone, Japan, the U.K. and the U.S. Emerging economies include: Brazil, Mexico, South Korea, Thailand and Taiwan. Sources: Central Bank of Chile based on Bloomberg, OECD and each country's statistics offices, and U.S. Federal Reserve.
I have a very simple mantra. Incentives drive behavior. Behavior sets social norms. And those social norms define culture. So if you have the wrong incentives, you’re probably going to have bad culture. If you have the right incentives, you’re probably going to have a much better culture. One thing that Preet Bharara said when he came to a conference we had at the New York Fed, he said one of the big challenges that he sees is that people don’t speak up early enough when they see something wrong going on. He said that if people spoke up early, a lot of these big 7 / 13  BIS central bankers' speeches  things would never have been big things. They would have been little things. And so, the important thing also is to really educate people that it’s okay if you see something that bothers you, that you’re not comfortable with, raise your hand. You’re not doing anybody a favor by keeping silent, hoping it will go away. You’re not doing anybody a favor by thinking, well, if I raise my hand, I’m sort of tattling on my colleagues. That is not the right way to think about it. Bad behavior is not good for you, it’s not good for the institution. And so, if you do see bad behavior, or something that you’re not really sure whether it’s bad behavior or not, raise your hand and raise it to your manager, and have a conversation about it.