tmpg ), a new york fed - sponsored group of market professionals working to support the integrity and efficiency of the treasury market, has concentrated its recent efforts on this topic. preliminary findings include an increasing volume of linked trades that clear centrally on one side and bilaterally on the other. this work has also uncovered information asymmetries in clearance and settlement risk management, which potentially could lead to a mispricing of these risks. moreover, increased understanding about the depth, breadth, and durability of credit arrangements that support clearance and settlement seems desirable. this would improve market integrity through greater understanding of risk throughout the clearing and settlement process and how it is affected by different conditions. since the financial crisis, there has been an effort to strengthen the resiliency of repo market infrastructure, which is another important element of treasury market plumbing. immediately after the crisis, the federal reserve was active in pushing reform of the tri - party repo market, which had been a locus of stress in 2008. more recently, treasury repo markets have undergone further changes, including market adaptations to post - financial crisis regulations, and the introduction of multiple programs expanding access to central clearing to a wider range of market participants. these markets also have been affected by efforts to set heightened expectations for ccps with regard to liquidity risk management, margins, and governance and recovery planning. this is consistent with the treasury department ’ s recommendation that regulators ensure appropriate risk management at ccps and other financial market infrastructures. for example, earlier this month, the sec approved the capped contingency liquidity facility — a liquidity risk management tool for the dtcc ’ s fixed income clearing corporation ( ficc ). this tool helps to ensure that ficc will have sufficient liquidity to cover the default of a government securities division member to which ficc has the largest exposure. this development reflects another positive step toward a safer centrally cleared repo market, and aligns well with broader official sector efforts to maintain a well - functioning and robust treasury repo market. finally, the joint staff report identified the importance of strong interagency monitoring of the treasury market, in close collaboration with the public. judging by this gathering, the commitment to this task is strong — which is good because many questions remain. how can the joint member staffs and private stakeholders best collaborate to ensure stability in the treasury market as the market structure evolves and new technologies are applied? how should practices and culture evolve accordingly? will new technology and

christopher kent : ageing and australia ’ s economic outlook address by mr christopher kent, assistant governor ( economic ) of the reserve bank of australia, to the leading age services australia ( lasa ) national congress, adelaide, 20 october 2014. * * * i thank tim atkin, laura berger - thomson, david jacobs, sharon lai and melissa watson for help in preparing these remarks. near - term outlook i ’ d like to thank leading age services australia for the opportunity to be here today. i want to focus on some implications of population ageing for the longer - term outlook. before that, i ’ ll make two remarks about the near - term outlook. first, with inflation expected to remain consistent with the 2 – 3 per cent medium - term target, monetary policy is currently configured to support growth in demand. low interest rates temporarily raise the disposable incomes of those with debt, but lower incomes for those reliant on interest - bearing assets. this is stimulatory nonetheless, in part because the household sector is a net debtor overall. low interest rates also encourage expenditure to be brought forward, provide an incentive for savers to shift into riskier, higher - return assets, and push up asset prices, to the benefit of those that own housing and equities. a second point is that while monetary policy tends to focus on the outlook for the next few years – which is dominated by business cycle considerations – it is important for the bank to account for longer - term structural changes. for example, labour force participation has declined noticeably over recent years. much of this owes to the usual response of discouraged workers, both young and old, to subdued labour market conditions. 2 this discouraged worker effect is likely to unwind as conditions improve. but some of the decline also reflects the increasing effect of ageing on labour force participation. this illustrates the point that to understand the near - term outlook better, we need to distinguish between shorter - term business cycle influences and longer - term structural forces. an increasingly important longer - term force is the ageing of the population, which is the focus of the rest of my presentation. population ageing – its nature population ageing is driven by three different forces. the first is the baby boom that followed the second world war. the second is the drop in fertility rates thereafter. combined, these two changes led to a “ bulge ” in the age distribution of the population ( graph 1 ). the early part of this cohort