14  All speeches are available online at www.bankofengland.co.uk/speeches  14  References Abad, J, Aldasoro, I, Aymanns, C, D’Errico, M, Rousová, L F, Hoffmann, P, Langfield, S, Neychev, M and Roukny, T (2011), ‘Shedding light on dark markets: First insights from the new EU-wide OTC derivatives dataset’, ESRB Occasional Paper Series, No. 11. Albertazzi, U, Becker, B and Boucinha, M (2018), ‘Portfolio rebalancing and the transmission of largescale asset programmes: evidence from the euro area’, ECB Working Paper Series, No. 2125. Ali, R, Haldane, A and Nahai-Williamson, P (2012), ‘Towards a common financial language’, paper available at https://www.bankofengland.co.uk/paper/2012/towards-a-common-financial-language Anderson, C (2008), ‘The End of Theory: The Data Deluge Makes The Scientific Method Obsolete’, Wired Magazine, 23 June. Anson, M, Bholat, D, Kang, M and Thomas, R (2017), ‘The Bank of England as lender of last resort: new historical evidence from daily transactional data’, Bank of England Staff Working Paper, No. 691. Bacon, F (1620), Novum Organum. Bagehot, W (1873), Lombard Street: A Description of the Money Market, Henry S. King & Co. Bahaj, S, Foulis, A and Pinter, G (2017), ‘Home values and firm behaviour’, Bank of England Staff Working Paper, No. 679. Bank of England and Procyclicality Working Group (2014), ‘Procyclicality and structural trends in investment allocation by insurance companies and pension funds’, Discussion Paper, July. Baptista, R, Farmer, JD, Hinterschweiger, M, Low, K, Tang, D and Uluc, A (2016), ‘Macroprudential policy in an agent-based model of the UK housing market’, Bank of England Staff Working Paper, No. 619.

Flexible labour market structures and decentralised wage-setting are generally regarded as the prerequisite to support smaller enterprises, for these are often the engines of innovation in post-industrial economies. Last but not least, we should not underestimate the role of policy-makers in developing education systems. Let me add a word on this last point. We are often told that Europe and Western countries in general need more engineers and mathematicians to restore their supposedly lost competitive edge. Engineers are definitely essential as creators yet the success of a company or a society requires more. To be truly competitive a firm also needs excellent management and marketing skills. In short, you need an entrepreneur. However, it is often overlooked when it comes to the educational reform in Europe. Young people should be taught the essentials of ethical entrepreneurship and finance from the very first grades onwards. When creating and producing something innovative you cannot just stop half way – you also have to sell it. Thirdly, talking about competitiveness, we should not underestimate the role of universities and higher education either. Money is again an issue here. We should be much more open to finding additional sources of financing. As we know, in the United States the success of universities relies on relatively broad-based funding. We also know that European education systems are already facing tensions in light of the traditional role of a state. In my opinion, policy-makers should promote new and innovative ways of funding higher education which would be clearly beneficial for all parties.