Compounded to it is the renewed influx of capital flows towards emerging economies and the resulting appreciation of our currencies. Against this backdrop, managing monetary policy has become more complex. Today, our assessment continues to be that the crisis in the developed world will sooner or later affect the performance of our economies. It is possible that the impact will be less than what we thought some time ago, but to assume that nothing will happen does not seem sensible. Nonetheless, the difficulties involved in measuring the actual impact makes me very cautious in measuring the impulse required by each economy to offset the effects of the external scenario. Today, prudent monetary policy management has to be prepared for all kinds of scenarios and to adapt the amount of stimulus applied according to needs established on a case by case basis. As I said a moment ago, activity we see today is at a level above what we  4  BIS central bankers’ speeches  forecast a few months back. In fact, in our latest Monetary Policy Meeting we decided to maintain the Monetary Policy Rate at 5% for a second month in a row. The current situation in developed economies is very complex, and teaches valuable lessons. On one hand, as to how imbalances that are not addressed on time end up creating enormous costs for the population.
As a  1  We have been tracking these developments using data our economists have developed to help us better understand the job prospects facing recent college graduates. These data are available on our website and are updated regularly. See The Labor Market for Recent College Graduates. BIS central bankers’ speeches  5  result, for the first time during this recovery, both unemployment and underemployment among recent college graduates has generally been falling. This means that, not only has it become easier to find a job upon graduation, but more college graduates are taking jobs that better utilize their degrees. In addition, starting salaries for recent college graduates have been increasing for the past couple of years, reflecting the growing demand for their skills in a tighter job market. To conclude, while there are economic challenges facing both the nation and the region, I am optimistic that we will continue to make progress on both fronts over the next few years. Achieving our dual mandate of maximum sustainable employment and price stability will help those who will graduate soon to achieve their own aspirations. Thank you for your kind attention. I would be happy to take some questions. 6  BIS central bankers’ speeches