and look impossible absent a world government. but an arbiter of the international monetary system can play a more limited role – not so much the referee brandishing the yellow and red cards of the football pitch, more the cricket umpire warning the players not to attack each other verbally and making it clear publicly when they believe the players are not abiding with the spirit of the game. invoking the mcc ’ s “ spirit of cricket ”, when a country knows that a policy such as an exchange rate regime requires modification, the player should walk. indeed, the players might in time come to realise that most games benefit when played according to a clear and agreed set of rules. so although it is not an international central bank, and the sdr is not a currency, the imf still has a role to play. given that most systemically important countries allow their exchange rates to float, the fund cannot have an independent remit for global monetary stability. hence, the fund ’ s role should be to support national policy makers by providing expert analysis about external risks to their domestic monetary policy objectives. national policies which appear sustainable in terms of countries ’ own objectives may interact and, through the resulting balance sheet effects, create risks to those same countries further ahead. the fund should be a forum in which countries can discuss these risks. it should also hold countries to account. in these ways, it can indirectly support global monetary stability. with countries naturally reluctant to cede any control over their own monetary and fiscal policies, it is likely that the imf will have as instruments only the powers of analysis, persuasion, and, in keynes ’ own favourite words, “ ruthless truth - telling ”. that phrase does not conjure up many memories of any of the many international meetings i have attended. but unless the imf has the self - confidence to play that role, its deliberations and statements will carry little weight. the fund requires an independent, respected and clear voice. the fund should focus its work on the international monetary system around three tasks. first, it should provide and share information about the balance sheets of all major countries, their composition and size, and the links between them. the fund has been in the forefront of the analysis of balance sheets for emerging market economies, and it needs to extend this approach to its surveillance of the industrialised world. in conducting this analysis, the fund must look at countries ’ exchange rate choices. but no one price is a sufficient statistic for the

term relationships, can be a winning strategy. for example, take handelsbanken. how many of you have heard of them? they are not yet a high street name, by comparison with say a barclays or a lloyds. but that is changing. they may be the fastest expanding bank in the uk at the moment. on average, they open a new branch – not a cost centre, a branch every two weeks. their business model is fascinating, quaker - even, in its orientation. they offer only basic banking services, mortgages and small business loans, to people in a tight, locally - defined catchment area. all credit decisions are taken locally by people, not centrally by a computer. no bonuses are paid and no one has a sales - target. when the whole firm out - performs, a contribution is made to a pooled fund which is invested on employees ’ behalf. the fruits of success are distributed equally and gratification is deferred. bis central bankers ’ speeches for banking, this is back to the future. if that sounds attractive, then it is down to us – not regulators, not politicians, you and i – to deliver it. if as bank customers we want to change the culture of banking, then we should start by supporting those banks who are delivering that change. putting your money where your mouth is would deliver far greater and more durable change than any amount of banker - bashing. already there are some encouraging signs of the winds of change blowing through the system, not just from the new entrants but among the uk ’ s oldest banks too. the new heads of the uk ’ s biggest banks have committed to restoring trust in their institutions and improving their social usefulness. and those words are beginning to turn into actions. barclays and today lloyds are seeking to change their sales - oriented culture, returning to their quaker roots. there is the quiet, but unmistakable, sound of a leaf being turned. if i am right and a new leaf is being turned, then occupy will have played a key role in this fledgling financial reformation. you have put the arguments. you have helped win the debate. and policymakers, like me, will need your continuing support in delivering that radical change. references cecchetti, s g and kharroubi, e ( 2012 ), “ reassessing the impact of finance on growth ”, bank for international settlements. galbraith, james k. ( 2012 ), “ inequality