ignazio visco : the aftermath of the crisis – regulation, supervision and the role of central banks lecture by mr ignazio visco, governor of the bank of italy, at harvard kennedy school, cambridge ( usa ), 16 october 2013. * * * previous versions of this text were used for lectures at the imperial college in london and at the accademia dei lincei in rome in march 2013. i wish to thank for useful discussions and help fabrizio balassone, paolo del giovane, alessio de vincenzo and giuseppe grande. introduction the financial crisis has brought to the fore a number of issues. it has been severe and widespread, and has affected many economies in different and long - lasting ways. maintaining financial stability has once again become a major concern of policy makers ; central banks are being heavily involved in this endeavour. a clear need has emerged for a substantial overhaul in financial regulation and supervision, also considering that the financial system of tomorrow will most likely be rather different from the one that has developed over the last two decades. scepticism has grown about the role of finance in the economic system, and especially its apparent separation from, if not conflict with, the real economy. we should take stock of what has gone wrong, and in so doing reflect on the way forward, as it is already taking shape, as well as on how to better link our theories to real world developments. in the decade before the crisis both the size of the financial system and its role and pervasiveness in the economy increased dramatically. the process has only slowed down with the crisis. in the euro area, the overall amount of financial resources collected by the private sector ( bank credit, bonds issued domestically and stock market capitalization ) rose from 140 per cent of gdp in 1996 to 210 in 2007, to further increase to 240 in 2012. broadly similar patterns are found for the united states, where the ratio rose from 230 per cent in 1996 to 360 in 2007 and then declined to 310 in 2012, and for the uk, where the ratio increased from 280 to 440 per cent and then remained stable. the total outstanding notional amount of over - the - counter ( otc ) and exchange - traded derivatives has risen from less than 100 trillion us dollars at the end of 1998 to around 500 trillion at the end of 2006, 700 at the end of 2007 and still 700 trillion in december 2012. financial deepening, by allowing greater diversification of risk and

ravi menon : what does it take to get to net zero keynote speech by mr ravi menon, managing director of the monetary authority of singapore, at the economic society of singapore annual dinner 2022, singapore, 17 august 2022. * * * esm goh, dr euston quah, distinguished guests, ladies and gentlemen. it is both an honour and pleasure to speak to you. there are many pressing issues i could talk about today. the world is just emerging from the most devastating pandemic in over a century, with far - reaching changes whose effects will be felt for years to come. a major war has broken out between the two largest countries in europe, heightening geopolitical risks and setting off a food and energy crisis across the world. the global economy is facing the sharpest surge in inflation and fastest pace of monetary policy tightening in 40 years, with highly uncertain consequences. instead, i want to talk about what i think is the mother of all challenges facing the world today, and for the next few decades – climate change. long after our conjunctural challenges of war, disease, and inflation are behind us, the climate crisis will still be with us, only more intense, more urgent, more disruptive. climate change climate change is already happening. over the last three decades, the number of registered severe weather events has tripled. over the last two decades, the rate of increase in sea levels has doubled. over the last decade, the pace of ice loss in the arctic and antarctic has tripled. this year, wildfires and heatwaves of unprecedented ferocity have swept across europe, north america, and australia, while record rainfall in countries ranging from india to america have caused devastating floods. climate change is happening at a faster pace than predicted by early climate models. it is critical that we stop putting more carbon into the atmosphere by 2050. according to climate scientists, to avoid catastrophic and irreversible climate change, global warming needs to be kept within 1. 5 degrees celsius above pre - industrial levels. this in turn requires that global greenhouse gas emissions must reach net zero around 2050, meaning we remove whatever greenhouse gases we put into the atmosphere every year. this is what more than 190 countries resolved as part of the paris agreement in 2015. the world is currently far from a net - zero emissions trajectory. to limit global warming to 1. 5 degrees celsius, global greenhouse gas emissions must peak by 2025