The fact that CPI inflation was far below the target can thus be seen as the result of a deliberate monetary policy from the autumn of 2008. GDP fell by 4.9 per cent in 2009. This is the largest fall in Swedish GDP in a single year in modern times. Average unemployment increased by approximately 2.2 percentage points during the year and amounted to 8.4 per cent in 2009. Both employment and the number of  BIS Review 32/2010  11  hours worked fell significantly. The reason that Sweden was so hard hit by the global crisis is that the Swedish economy is highly dependent on exports. The effect on GDP was reinforced by the fact that the households increased their saving. Companies also sold from stock to a great extent during the year, thus reducing investments in stock and contributing to the fall in GDP. The impact of the financial crisis surprised all the forecasters The turmoil on the financial markets has been part of the picture and has influenced monetary policy and the forecasts since 2007. It nevertheless came as a surprise that the situation would deteriorate as dramatically as it did in the autumn of 2008 and result in such a dramatic fall in production around the world. Neither the Riksbank nor other analysts predicted the strength of the global financial crisis and how much it would affect inflation and the development of the real economy.
While I have my own views as to the application of United States banking and securities laws to this fact situation, I prefer not to spell those out in my prepared remarks. Instead, we all might prosper by sharing our views as to the proper application of our home country’s laws to individuals in our countries who might do business with IIB. I should note that this fact situation is a pure figment of my imagination. The cooperative efforts of bank supervisors over the world should be designed to ensure precisely against this sort of bank. In other words, like Atlantis, IIB should never surface above water. Our discussion should include responses to the following questions: (1) is IIB engaged in an impermissible activity in your home country; (2) if it is impermissible, what authority has responsibility for enforcing that law; (3) if impermissible, is that a civil or criminal violation; (4) if impermissible, is there any way for IIB to qualify to do business in your home country; and finally, (5) does your home-country court have jurisdiction to hear cases brought by a customer against IIB? Conclusion To conclude, I simply wish to commend the banking and legal communities for learning as much about electronic and Internet banking as they can, now, and for trying to stay ahead of the curve of ever evolving and improving technology. I fully agree with the philosophy of letting the markets decide what will work and what will not.