, what and how the funds were spent ( according to budget or if there is a case of misuse of funds ). finally, the society can be the vehicle, at the least, for us get to know each other in our profession and exchange views and ideas, and socialize. networking is an important element of every professional ’ s working life today. i as the governor of the central bank of png welcome very much the birth of this society and encourage all who are eligible to become members. i have asked all my economics graduate staff to join. the bank supports this course as evident by it being the very first entity to make a financial donation to the society, under the former governor. this fund has enabled the society to set itself up and eventually arrange this launching. i encourage other employers of economists to assist the society in its endeavours so it can grow and meet its strategic objectives, and for the enhancement of the profession in the country. i note and appreciate all the efforts by the four interim executives in initiating and ensuring the birth of this society through the formal incorporation of the society by ipa under association incorporation act on 19th december 2007 and in organizing the launching. it has taken this long to have the society formally launched but the important thing is the moment has arrived and it is happening now. thank you very much for that. i am also pleased to note that the society will hold its first full meeting in one month time to elect the first full office bearers. i encourage all you potential members to pay up your membership fees so you can be able to vote on that day and support the society to see it mature through time from this birth. let us take pride in our profession and in this moment – the launching of the ekonomic society of papua new guinea. with all these words, i hereby declare that the ekonomic society of papua new guinea is launched. thank you.

have had an opportunity to observe that policy actions in 1987, 1998, and 2001 - 03 cushioned the economy, but they did not stop major declines in the prices of equity in 1987 and 2001 or of risky credits in 1998. short - term rates have risen substantially in the past year, reducing the profitability of " carry trades " without triggering an unwinding that drove long - term interest rates higher or widened risk premiums. and expectations that policy tightening would remain gradual over the near - term have not stopped long - term rates from fluctuating substantially in response to incoming data ; the movements of future or forward rates out the yield curve after surprises in data have been at least as large since 2003 as they were before. that is not to say that we have nothing to worry about. as i already noted, alan greenspan, himself, has often been concerned about market complacency - as recently as his latest monetary policy testimony. people may well perceive the economy as more stable than it is or central banks with greater power than we have to smooth the economy or to foresee our own actions. clearly, reminders to the public of the inherent uncertainty in economic developments and policy responses are appropriate and should have some effect. the question is whether these warnings should be supplemented by actions to inject uncertainty into policy pronouncements by saying less than we can or into the economy by shifting our objectives away from seeking the best outcome for the economy over the intermediate term. in my view, such policies would result in less accurate asset pricing, reduce public welfare on balance, and definitely be at odds with the tradition of policy excellence of the person whose era we are examining at this conference.