economics as the business of trading in markets. unfortunately, the timing was all wrong. economics was born at the sunset of the agrarian age, and at the birth of an industrial age in which the nature of economic transactions was completely transformed. the founding fathers of our discipline invented theories for a world which was about to vanish from history. in the industrial society, a category to which barbados and most of the caribbean rightly belong, the overwhelming proportion of the population lives in conurbations, where people live, work, produce, consume and conduct economic exchange in the same space, and contemporaneously. in the agrarian economy the worker tends his farm during the week, and goes to market on market day ; in the industrial economy the hotel worker travels from home to workplace every day, and he or she may go supermarket shopping any day. in the agrarian economy the farmer takes his produce to market on market day, in the industrial economy he sells it on contract to the supermarket. in the agrarian economy goods and services are exchanged in the market on market day ; in the industrial economy shops and businesses are open every day. in the agrarian economy each market is clearly defined in time and space ; in the industrial economy there is no spatial restriction – commodities are exchanged right across the world – and there is no single defined period over which all transactions must be completed. buyers and sellers make contracts for whatever period is mutually agreeable. i have come to believe that economists have built a discipline for a world which has largely vanished, and that is why we have nothing sensible to say about the challenges that face the world economy today. economics does not give you a straight answer about the price of oil or any other commodity, about the exchange rate of the euro to the dollar, about the impact of deficit reduction in eu countries, about the effects of interest rate changes by the federal reserve, about the motivation for stock market fluctuations, or about any other economic question of interest. it is true that there is a dominant position in the economics profession on each of these issues, but that dominant view has proved badly wrong, and persistently so. i now believe that we need a new paradigm in economics, one that is appropriate to how individuals and societies conduct economic exchanges in an industrial society. i am not alone in this view. some of you will be familiar with the real world review, and online journal which was born of a graduate student revolution against the absurdity of conventional neoclassical economic explanations of the world. just

, are liable to pay corporation tax. we are seeking new opportunities to strengthen ibfs activities, with the exploration of new markets in latin america, africa, the middle east and elsewhere. we are also introducing new products and services geared to the needs of the various markets from which we draw our clients. this conference offers an opportunity to share ideas and information on how we may perfect our strategy and message. we will begin by looking into the future a bit, with a panel and discussion on the prospects of business with cuba, a country with which barbados has a long history of diplomatic and other relationships. we will also be discussing issues of the regulatory framework, and initiatives to strengthen institutional support and facilitation of the industry. our final presenter today will suggest ways forward for the wealth management industry. we live in an interconnected world in which the execution and financing of international commerce is open to competition to all nations, large and small. we can be assured of barbados ’ future as a player in this global market, so long as we strive always to offer a superior value proposition. i look forward to today ’ s discussions towards that objective. bis central bankers ’ speeches