crisis at the cost of imposing a heavy burden on the public budget, reinforced the turkish banking system ’ s resilience to shocks compared to the banking systems of other countries. another factor that will facilitate a relatively faster recovery for the turkish economy is the household indebtedness ratio, which is lower than those of many other emerging economies. households have been affected relatively less by exchange rate shocks owing to the significantly low share of fx loans in consumer loans. however, i would like to underline once more that economic recovery is expected to be gradual and slow as opposed to the rapid recovery in economic activity after the 1994 and 2001 crises experienced in turkey and that a significant vacceleration in aggregate demand is not expected anytime soon. persistent tightness in external financing conditions, the lagged and gradual recovery in our primary export markets and the large share of durables and capital goods exports, which are sensitive to foreign demand, indicate that recovery in the turkish economy will be different from what we have experienced so far. distinguished members of the world economic society, esteemed guests, it is a widely accepted fact that in modern economics, decision - makers act rationally and their decisions form a dynamic system in the field of economy. while measuring the efficiency of policies, their response to such policies over time is examined within a dynamic framework. as we can see in the conference program, almost every single topic in the economic literature is addressed from a dynamic perspective. we are on the brink of starting a two - day conference during which we will be listening to pioneer studies covering a wide range of topics from game theory to the labor market, from education economics to the functioning of the real estate market. there is no doubt that this is an invaluable experience for economists to catch up with the global economic agenda and to follow recent developments. i would like to thank everyone, particularly bahcesehir university and koc university, who have contributed to the organization of this conference. i hope that it will be a productive conference and i would also like to extend my regards to the contributors of this event, to the participants and all the guests.

##pranational body to safeguard global economic and financial system. these discussions are necessary and maybe overdue. a global reserve currency might be needed to alleviate the tension between appropriate monetary policy of the reserve currency country and that of the global economy. creating an international clearing agency between trade partner countries may be useful to reduce the need for accumulating foreign exchange reserves. a supra - national body may be the only solution for the externality problem in the bretton woods system and its successor, so called, the bretton woods ii. main responsibilities of central banks may be enhanced to the stability of asset prices as well as prices of goods and services. of course, as a central banker, i am fully aware that identifying asset bubbles is not an easy task and it may also be challenging to convince the public and politicians about the necessity of raising policy rates at a time when economy is booming but the prices of goods and services are stable. however, the recent crisis has demonstrated that central banks may ignore imbalances in financial markets at their own peril. today, we have a unique opportunity to discuss the future of the global financial system and the role and responsibilities of the emerging economies. i believe that the timing and the framework of this conference will provide ample opportunity for sharing new ideas and highlight some critical lessons to reshape a better global financial system for a more resilient and stable global economy. once again i extend my warm welcome to all participants. i also want to thank the distinguished participants for their valuable contributions. i hope you enjoy both the conference and your stay in istanbul.