below 2 percent — as has been the case for most of the past decade — monetary policy will aim for inflation to moderately exceed 2 percent for some time. and this brings me to the next topic. recent fomc decisions and the new monetary policy framework at our most recent fomc meetings, the committee made important changes to our policy statement that upgraded our forward guidance about the future path of the federal funds rate and asset purchases, and that also provided unprecedented information about our policy reaction function. as announced in the september statement and reiterated in the following statements, with inflation running persistently below 2 percent, our policy will aim to achieve inflation outcomes that keep inflation expectations well anchored at our 2 percent longer - run goal. 4 we expect to maintain an accommodative stance of monetary policy until these outcomes — as well as our maximum - employment the statement is available on the board ’ s website at https : / / www. federalreserve. gov / monetarypolicy / review - of - monetary - policy - strategy - tools - andcommunications - statement - on - longer - run - goals - monetary - policy - strategy. htm. the statements issued after the september and subsequent fomc meetings are available, along with other postmeeting statements, on the board ’ s website at https : / / www. federalreserve. gov / monetarypolicy / fomccalendars. htm. - 4mandate — are achieved. we also expect it will be appropriate to maintain the current target range for the federal funds rate at 0 to 1 / 4 percent until labor market conditions have reached levels consistent with the committee ’ s assessments of maximum employment, until inflation has risen to 2 percent, and until inflation is on track to moderately exceed 2 percent for some time. in addition, in our december fomc statement, the committee combined our forward guidance for the federal funds rate with enhanced, outcome - based guidance about our asset purchases. we indicated that we will continue to increase our holdings of treasury securities by at least $ 80 billion per month and our holdings of agency mortgage - backed securities by at least $ 40 billion per month until substantial further progress has been made toward our maximum - employment and price - stability goals. the changes to the policy statement that we made over the past few fomc meetings bring our policy guidance in line with the new framework outlined in the revised statement on longer - run goals and monetary policy strategy

ignazio visco : creating job, eradicating poverty and achieving sustainable prosperity statement by mr ignazio visco, governor of the bank of italy, on behalf of the constituency representing albania, greece, italy, malta, portugal, san marino and timor - leste, to the development committee, tokyo, 13 october 2012. * 1. * * creating jobs for development : a challenge for all countries according to the ilo ’ s latest estimates for 2012, the global number of unemployed is 200 million, about 30 million more than in 2007. at the same time, the share of the working age population with a job declined to an estimated 60. 3 per cent in 2012 from 61. 2 per cent in 2007. this scenario is projected to remain mostly unchanged in the coming years and can even turn out to be optimistic should some of the downward risks materialize. thus, the world development report ( wdr ) 2013 on jobs recently published and its companion paper “ creating jobs for development : policy directions from the 2013 world development report on jobs ” are timely in addressing one of the most pressing problems for many policy makers around the world. they also offer an opportunity to refocus the attention of the bank on its original mandate of eradicating poverty and boosting prosperity. jobs and especially good jobs, are the main avenue to achieve both goals. as the wdr 2013 states, it is for the private sector to create economically and socially sustainable jobs, and for the government to provide a stable macroeconomic environment, an investment friendly business climate, a solid rule of law and a balanced labor market regulation. policies and interventions will need to be tailored to each country ’ s initial conditions, based on the diagnosis of the constraints to job creation. 2. the knowledge bank : implications for the business model the strategy that aims at eradicating absolute poverty in poor countries and achieving sustainable and inclusive prosperity in middle income countries deserves support. financial resources need to be directed with priority towards countries that do not have access to the market at a reasonable cost. on the contrary, about 50 per cent of the overall ibrd exposure is currently to countries with per capita income above 2, 900 us dollars, and 30 per cent is to countries that can borrow from the market at a spread of no more than 150 basis points over the corresponding us treasury. redirecting financial resources to the least developed countries cannot imply that the wbg ceases to serve middle income countries. the wbg needs to define a