To recapitulate this train of thought, Kohn was very sceptical whether the three above-mentioned conditions can be sufficiently met; however, he did not preclude that in the future, the understanding of economic processes will improve as much as to enable running the extra action policy where reasonable. Numerous statements following the presentation have indicated that the proper supervision is much better a response to the asset bubbles and many people have stressed that this is why the financial markets supervision should be independent of politicians, as it may be necessary to take actions aimed to restrict the speed of the speculative bubbles build-up , when this does not suit certain politicians due to the elections cycle. The majority of lectures which are delivered over the series of seminars by the Centre for European Regional and Local Studies and the UNESCO Chair at Warsaw University apply to the issues vital for local communities. The title of today’s seminar might suggest that we have discussed problems vital for the global economy and not for a local community, a city, a region or a university/higher education institution. This is not the case, however, as in the years to come the globalisation of manufacturing, services, investments, finances, the labour market and knowledge will progress, irrespective of the scale of national protectionism. The globalisation results will be thus felt by all: countries, regions, local communities and individuals. If we want to succeed, both as a country and as each and every one of us, we must be well prepared for globalisation.

the result of large purchases of sovereign bonds by Asian central banks and oil- exporting countries. Depending on which hypothesis is true, the implications for the monetary policy are different. If the long-term rates go down as a result of poor growth prospects, the current short-term interest rates should be lowered respectively so as to prevent possible deflation. If, however, specific factors related to globalisation or decrease in the risk premium are the cause of persisting low long-term interest rates, the short-term interest rate should be higher in order to achieve appropriate restrictiveness of the monetary policy  24  See Corbo V., Landerretche O., Schmidt-Hebbel K. “Does Inflation Targeting Make a Difference” in: N. Loayza and R. Soto (red.) “Inflation Targeting: Design, Performance, Challenges” (Central Bank of Chile: Santiago 2002). 25  Gürkaynak R.S., Levin A.T., Marder A.N., Swanson E.T. “Inflation Targeting and the Anchoring of Inflation Expectations in the Western Hemisphere”, forthcoming in Mishkin, Frederic and Klaus Schmidt-Hebbel (red. ), Series on Central Banking, Analysis and Economic Policies X: Monetary Policy under Inflation Targeting (Santiago, Chile: Banco Central de Chile), 2006 and Gürkaynak R.S., Levin A.T. Swanson E.T. “Does Inflation Targeting Anchor Long-Run Inflation Expectations? Evidence from Long-Term Bond Yields in the U.S., U.K., and Sweden”, Federal Reserve Bank of San Francisco Working Paper 2006-09, March 2006. 26  For example a question whether monetary policy should burst asset bubbles was hotly debated during the large European Central Bank conference on 16 to17 March 2006.