experiencing a major change in our staffs ’ views of the organizational culture and management system, which have been formed on long - standing social environment and customs. we should improve our business practices and organizational culture, and bring innovation to our administrative and personnel management system, in line with the changing times. to this end, starting with the assessment of our organizational culture last year, we have been working on developing a medium - and long - term plan this year to bring innovative change to our administrative and personnel management system. with the help of professional consulting firms, the plan will include a fundamental improvement roadmap across the organization and personnel overall. we will need to come up with reasonable and practical solutions. when carrying out innovation in the administrative and personnel management system, voluntary participation by staff is essential. in pursuit of innovation in any organization, conflicts of interest among members naturally occur, making it difficult to build a consensus. however, if we deal with this challenge wisely, our status as a pivotal policy making body will be reinforced further and staff members ’ pride will be enhanced. members of the bank of korea family! even in the face of the covid - 19 pandemic, the bank of korea has been able to fulfill its role without cessation, which i believe is attributable largely to our staff members ’ hard work. having said that, our economy is not yet fully free from the effects of the pandemic, and ahead of us lie a number of problems that we could not anticipate in the process of responding to the crisis. furthermore, we are now at a very crucial juncture where there are also policy tasks that have been building up and need to be dealt with to sustain stable growth. with a sense of mission as central bankers, we should do our utmost to fulfill the duties and responsibilities entrusted to us in our positions. i would like to thank everyone once again for your hard work, and i wish each one of you together with your families, health and happiness always. thank you. 3 / 3 bis central bankers'speeches

seongtae lee : recognizing and coping with macroeconomic model uncertainty in designing monetary policy opening address by mr seongtae lee, governor and chairman of the bank of korea, at the the bank of korea international conference 2008, seoul, 26 may 2008. * * * ladies and gentlemen, i am indeed delighted to be hosting the bank of korea international conference 2008. all of us at the bank of korea are very honored that world - renowned scholars and central bankers have been able to get together to benefit us with the opportunity of hearing their collective wisdom on conducting monetary policy. i would especially like to express my deep gratitude to our keynote speaker professor thomas sargent, to our moderator professor barry eichengreen, to our roundtable panelists president james bullard of the federal reserve bank of st. louis, deputy governor lars svensson of sveriges riksbank, professors eric leeper and yung chul park, and to all of our chairpersons, speakers and discussants. this year's conference is being held under the theme of “ recognizing and coping with macroeconomic model uncertainty in designing monetary policy ”. in a rapidly changing environment, this is one of the hottest issues facing policy - makers and economists all around the world. this topic is also important to the bank of korea given that the korean economy is subject to the highly uncertain global economic situation. it is reported that the volatility of output growth and inflation has declined substantially in the united states and other major industrial countries since the mid - 1980s. there are various stories that seek to explain what has caused the decline in economic volatility. as federal reserve chairman ben bernanke pointed out, structural changes, improved macroeconomic policies or a favorable environment may have contributed to the “ great moderation ”. although there are disagreements about the causes, i believe that improved monetary policy has played a significant role in stabilizing macroeconomic fluctuations. the improvement in monetary policy, in turn, may be attributable to advances in macroeconomic theory at least in some respects. rational expectations and the “ lucas critique ” of policies based on econometric models motivated the launch of a new framework for the building of truly structural models that can analyse the effects of macroeconomic policies and institutional changes. all these efforts have deepened our understanding of how the economy works and what the optimal policies are. despite the progress in macroeconomic modeling, however, developments in economic conditions, especially in the highly integrated global environment, still