the corresponding increase in retail prices ( the effect on daily purchases ) amounts on average to between 0. 5 and 1. 8 %. initially, we thought that the inflationary effects would end up at the lower end of this range, and that is what we made public. this may have been a little premature, because, with hindsight, the inflationary effects appear to be closer to the top end. in my view, the provision of information on this point could have been better. besides a source of news, the bank is of course a consumer of economic news in the dutch press. i find the quality of financial and economic reporting quite sound. dutch journalists are generally wellinformed and are able to put news items quickly into context. the latter helps us to fine - tune our own analysis. it is good to know how others interpret economic and social developments, such as the consequences of austerity measures for society. but one is obviously extra critical when it comes to one ’ s own profession, so i do have some comments. compared to the british, american and german press, economic reporting is less in - depth. newspapers such as the wall street journal, financial times or frankfurter allgemeine more often succeed in bringing analyses that give a surprising perspective or new insight. the dutch press could also be a little more critical in the field of economics. i don ’ t wish to directly oppose a recent statement by my fellow supervisor docters van leeuwen, as to the reversal of the burden of proof, but if i had been a journalist, i would have gone a little further than simply reporting this standpoint. just as an independent parliamentary press is essential for the functioning of a democracy, an independent economic press is essential for the functioning of a capitalist society. scandals surrounding lernout & hauspie in belgium or baan and ahold in the netherlands came to light mainly thanks to the anglo - saxon press, and not the dutch. in the small dutch market there is obviously less time and manpower available for economic analyses or investigative journalism. but the press does indeed have a curious and critical attitude in other areas. so some improvements may be possible. a comparison with the anglo - saxon press also reveals some positive aspects. i think the dutch press is generally neutral and balanced. some english newspapers, say, take a consistently anti - emu approach, in which the stability pact and the ecb ’ s monetary strategy always have to take the rap. fortunately, you

development of separate models for the major quantifiable risks, a system of capital standards together with a supervisory review of other, non - quantifiable risks, seems more likely. conclusion 15. let me conclude. the overall issue of this conference, particularly of this session, is where capital regulation is heading. in my address, i have argued that, as supervisory objectives are unchanged, a reduction in banks ’ capital adequacy would not be desirable. neither is there a cause for fundamental alterations in the basic framework of the capital accord. at the same time, the basle committee is committed to maintaining the effectiveness of capital regulation and willing to consider improvements, where possible. in this regard, the advances made by market participants in measuring and modelling of credit and other risks are potentially significant and might at some point be incorporated into capital regulation. but before we reach that stage, there are still formidable obstacles to be overcome.