##servance of resolutions adopted by the united nations security council concerning the fight against terrorism. - obligation to report to the central bank the existence or nonexistence of financial assets owned by identified individuals and their transactions. - implementation of special mechanisms to keep transaction records. - implementation of policies and designing internal proceedings and controls aimed at preventing activities related to terrorist financing. - development of a transaction guide intended to identify transactions suspected to be related to such purpose, in agreement with the financial action task force ( fatf ) recommendations. in this case, as opposed to what happens on money laundering, argentina does not yet have any substantive law on terrorist financing, which hinders the application of sanctions in addition to the freezing of funds, which takes place immediately. our country is aware of the importance of typifying terrorist financing as soon as possible. therefore, we are working jointly with other bodies of the executive, legislative and judicial branch, to pass new legislation to make argentine criminal law consistent with international regulations. the first step in this process was the recent ratification of the united nations convention for the suppression of the financing of terrorism. this has been the result of a persistent effort to raise awareness among political leaders - mainly, the congress - of the importance of working on these issues. undoubtedly, it is a solid basis for a national regulatory framework. we are conscious that having rules and regulations consistent with international standards is not enough. prevention and punishment of money - laundering and terrorist financing crimes demand dayto - day follow - up and supervision. therefore, the central bank has prioritized the supervision of the proper operation of the financial system. in particular, it has created a specific compliance area, composed by a group of specialized examiners, exclusively dedicated to the investigation and surveillance of the financial system. full disclosure to other regulatory authorities around the world is the right policy to pursue. for this reason, our team is working with and being trained by the us treasury and federal reserve, the international monetary fund and the world bank – our hosts today -, and the treasury of spain, among others. we are well aware that we cannot make any progress just on ourselves. as i started today, global crimes need global solutions. therefore, we are working towards including these issues on our regional agenda. for such purpose, late last march we organized the first regional seminar on money - laundering and terrorist financing. we hosted outstanding specialists on this subject, to discuss and exchange experiences with our latin american partners, and mainly to assess all the

increase in domestic demand would translate into larger imports and not necessarily into higher prices. my opinion is that “ financial integration ” measure ( like the sum of foreign assets and liabilities over gdp ) seem to be better indicators of globalization as a “ price container ” than “ real economy ” measures ( such as the trade to gdp ratio ). actually, another way of looking at the phenomenon is that it does nothing but providing an additional reason to understand why lower inflation was so widespread. in fact, since countries that peg their currencies to another, in this case the us dollar, actually lack an independent monetary policy and borrow it from the fed. as the fed has pursued relatively prudent policies, in a forty - year term it can be expected that all countries with currencies pegged to the us dollar will have a lower inflation. - white mentions the possible re - emergence of inflation as one of the two main problems going forward ( the other being an unwinding of the various “ imbalances ” ). but he does not discuss one very interesting aspect of this development : the recent pick up in inflation at the international level is to a great extent, a consequence of the process of catching up of billions of people in the developing countries to levels of consumption closer to those in developed countries, including changes in dietary patterns. let me hypothesize that we are approaching a true law of one price, with developed countries converging top - down and emerging countries bottom - up. - there is a risk that the insolvency that lies at the base of the current crisis ( although manifested until now largely in a lack of liquidity ) may impart an inflationary bias to the system and that the unwinding of the imbalances leads to more inflation. the hypothesis that states that globalization may reduce policymakers ’ ability ( and, consequently, incentives ) to temporarily stimulate output was perhaps never heeded by policymakers. certainly, they do not seem to be acting in accordance to it now. - also, we should not forget that there is an additional “ insolvency ” looming in the horizon : the unfunded liabilities of social security systems in developed countries. there be a temptation to inflate that burden away. thus, there are both short - term and long - term reasons to expect a higher inflation rate in the future than during the “ great moderation ” period. let me turn now to my last comments. regarding commodity