sterilised. we will also be experiencing some exchange losses due to movements in the sdr / us exchange rate and the appreciation of the jamaica dollar relative to the us dollar. however, the overall loss is not expected to have an impact on money supply or inflation as the bank will manage its balance sheet to offset any such impulse. conclusion since the completion of the jamaica debt exchange and the signing of a stand - by arrangement with the international monetary fund, there has been a gradual improvement in jamaica ’ s macroeconomic fundamentals. all targets were met under the first review of the imf stand - by arrangement and, from all indications, the targets under the second review will also have been met. in addition, no financial institution requested assistance under the financial system support fund. these developments have boosted investor and consumer confidence as demonstrated in the jcc conference board survey of consumer and business confidence and our own survey of business expectations. the sacrifices being borne by businesses and individuals in terms of lower returns on investment and the cut in real wages are already producing positive results by setting the stage for private sector - led economic dynamism. the bank of jamaica remains committed to its mandate of maintaining a stable macroeconomic environment characterised by orderly financial markets and stable consumer prices. these are the necessary macroeconomic conditions for sustainable growth and development. thank you.

greater risks to financial stability and price stability in the future. the eurosystem has applied a number of unconventional measures to maintain financial stability. these measures helped to prevent an escalation of the financial turmoil and constitute a virtually unlimited supply of liquidity to banks. but monetary policy cannot substitute for other policies and must not compensate for policy inaction in other areas. if the eurosystem funds banks that are not financially sound, and does so against inadequate collateral, it redistributes risks among national taxpayers. such implicit transfers are beyond bis central bankers ’ speeches the mandate of the euro area ’ s central banks. rescuing banks using taxpayers ’ money is something that should only be decided by national parliaments. otherwise, monetary policy would nurture the deficit bias that is inherent to a monetary union of sovereign states. in this regard, the situation of the eurosystem is fundamentally different from that of the federal reserve or that of the bank of england. moreover, extensive and protracted funding of banks by the eurosystem replaces or displaces private investors. this breeds the risk that some banks will not reform unviable business models. so far, progress in this regard has been very limited in a number of euroarea countries. and the eurosystem has also relieved stress in the sovereign bond market. however, we should not forget that market interest rates are an important signal for governments regarding the state of their finances and that they are an important incentive for reforms. of course, markets do not always get it right. they may have underestimated sovereign risks for a long time and now they are overestimating it. but past experience taught us that their signal is still the most powerful incentive we have. at any rate, i would not rely on political insight or political rules alone. after all, monetary policy must not lose sight of its primary objective : to maintain price stability in the euro area as a whole. what does this mean? let us say that monetary policy becomes too expansionary for germany, for instance. if this happens, germany has to deal with this using other, national instruments. but by the same token, we could say this : even if we are concerned about the impact on the peripheral countries, monetary policymakers must do what is necessary once upside risks for euro - area inflation increase. delivering on its primary goal of maintaining price stability is essential for safeguarding the most precious resource a central bank can command : credibility. to sum up : what we