- defined underlying markets and are consistent with internationally - recognized standards are available. i want to thank the many institutions here today, and the many more that have played equally constructive roles, for their efforts in this process. this month marks the one - year anniversary of sofr and is close to the one - year anniversary of the other new risk - free rates. over that year, we have seen the establishment of new futures markets, cleared swap markets, and debt markets based on these new rates. sofr futures, which did not exist a year ago, have seen more than $ 7 trillion in cumulative notional volumes. this has been a crucial development for market liquidity and is helping to spur the growth of sofr swaps and other derivative markets. and sofr is being used in cash products, with $ 81 billion in sofr - linked debt issued over the past year. new markets do not arise overnight — in normal circumstances they can often take decades to develop. what has been accomplished over the past year is remarkable. at the same time, we have only a little over two and a half years until the point at which libor could end, and the transition needs to continue to accelerate. the private sector needs to take on this responsibility, and we expect you to do so. the federal reserve ’ s supervisory teams are including the transition away from libor in their monitoring discussions with large firms. the federal reserve will expect to see an appropriate level of preparedness at the banks it supervises. as the alternative rate reference committee ( arrc ) continues to make progress on industry - led 1 / 2 bis central bankers'speeches approaches to the transition, the transition paths away from libor will become clearer for banks of all sizes. while we expect you to take on this responsibility, we in the public sector must also recognize our need to help. the fsb has supported this transition globally, and, in the united states, the financial stability oversight council has supported the arrc ’ s work. it is important that we continue to do so, and i want to thank you all today for the thoughts you have shared with us on this transition and what is needed to make it succeed. 2 / 2 bis central bankers'speeches

donald l kohn : global economic integration and decoupling speech by mr donald l kohn, vice chairman of the board of governors of the us federal reserve system, at the international research forum on monetary policy, frankfurt am main, germany, 26 june 2008. the original speech, which contains various links to the documents mentioned, can be found on the us federal reserve system ’ s website. * * * during the past decade, one of the most prominent themes sounded by policymakers, observers, and analysts of international economic developments has been " globalization. " based on rapid advances in trade, finance, transportation, and communications, the world economy has become increasingly tightly knit. large numbers of the world's population – including those in china, india, and the former soviet union – have emerged from their relative isolation to participate more fully in the global economic system. the impression has been that national borders and regional differences are becoming less and less relevant as businesses increasingly operate in a single global market. in the past year or so, however, especially as the housing sector in the united states slowed sharply and turmoil erupted in many financial markets, a different theme has come to the foreground : " decoupling. " this term refers to apparent divergences in economic performance among different regions of the world economy. first, there has been a perception that the business cycles of the united states and other industrial economies are becoming less synchronized, with the u. s. economy weakening more sharply than many other industrial economies over the past several quarters. second, decoupling is often used to refer to the fact that economic growth in the emerging market economies is holding up, even as growth slows substantially in the united states and, to a lesser extent, elsewhere in the industrial world. finally, and as a related point, observers point to the fact that even as the financial markets of many industrial countries have been roiled by the turmoil that emerged last august, conditions in the traditionally volatile financial markets of emerging market economies have proved surprisingly resilient. in my talk today, i would like to address two questions : first, is the world economy genuinely experiencing divergences in economic and financial performance being described as " decoupling "? and second, if true, can we reconcile the perception that globalization has made economies increasingly interlinked with the suggestion that the most recent u. s. slowdown has not been matched by slowing elsewhere to the extent that we have seen in recent cycles? 1 global integration