management transactions for new bond issues is nearly final, and an earlier draft standard on fx stop - loss orders has been absorbed into the fx global code. in each case, potential conflicts of interest are mapped to high - level principles designed to mitigate them. for reference price transactions, emphasis is placed on transparency with clients on mechanics and potential conflicts, and on mitigating the risk that the wider transactions of dealers could be market moving. the draft standard on risk management for new bond issuances sets out principles to mitigate risks around selection and formation of reference rates. the fmsb ’ s statements of good practice, such as for surveillance of fx markets, provide more detailed guidance and worked examples to help set expectations. the fmsb is also scanning the horizon for future misconduct risks, including through its innovative behavioural cluster analysis. rightly, given rapid changes in underlying market structure, this process has prioritised work on vulnerabilities arising from fast automated markets. will these standards and codes make a difference? we know from history that codes are of little use if nobody reads, follows or enforces them. why should the fmsb ’ s efforts be expected to help reverse the tide of ethical drift? indeed, given the long history of misconduct, aren ’ t such efforts akin to king canute rebuking the waves? i ’ m more optimistic that the tide will turn because the fmsb is part of a much broader effort by uk authorities and market participants. together, we have created a comprehensive and mutually reinforcing set of measures that strengthen the hard and soft market infrastructure. the resulting incentives give fmsb standards moral force and practical consequence. first, in the fmsb ’ s core work, the best in the market are taking responsibility for identifying and codifying best practice, in a way that complements and reinforces existing regulation. the fmsb now convenes senior participants from fifty global issuers, underwriters, asset managers, exchanges, custodians and investment banks. the breadth and engagement of the membership gives its standards credibility and creates peer pressure within the industry to promote adherence. canute, king of denmark, england and norway, 995 - 1035, reputedly set his throne by the sea shore and commanded the incoming tide to halt and not wet his feet and robes. yet " continuing to rise as usual [ the tide ] dashed over his feet and legs without respect to his royal person. then the king leapt backwards, saying : '

growth and the progressive rise in interest expenditure. it is difficult to assess the potential impact of a higher deficit on sovereign risk premiums : the relationship is non - linear and volatile, influenced by many variables some of which are not immediately quantifiable. if the fiscal expansion were accompanied by a deterioration in investor confidence such as that which, for various reasons, occurred between 2011 and 2012, the impact on interest rates could, like then, be especially strong. it is impossible to apply to cases like this the estimates based on the figures recorded in advanced economies in normal financial conditions. nor should it be forgotten that every year the state must issue around 400 billion euros in public debt. the econometric model does not explicitly take account of the complementarity between public and private capital in firms ’ production function. public investments capable of increasing the profitability of private capital, by encouraging its accumulation, can translate into higher values of the multiplier. 1 the empirical literature on this complementarity is extensive but – in part owing to non - negligible methodological difficulties – has not produced univocal findings. the estimated effects nevertheless confirm its importance. 2 while the simulations are not fully comparable, econometric exercises conducted by other institutions nonetheless highlight the key role of the factors i mentioned earlier : the reaction of monetary policy, the ability to select investment programmes judiciously and carry them out without delay or waste, and expectations concerning future developments in public finances ( table 2 ). 3 public investment and growth potential economic analysis has long recognized that technical progress and total factor productivity dynamics are the true engine of economic growth in the advanced countries, where the driving forces of the initial rapid accumulation of physical see l. burlon, a. locarno, a. notarpietro and m. pisani, ‘ public investment and monetary policy stance in the euro area ’, banca d ’ italia, temi di discussione ( working papers ), 1150, 2017. reviews of the literature are provided in : a. m. pereira and j. m. andraz, ‘ on the economic effects of public infrastructure investment : a survey of the international evidence ’, journal of economic development, 38, 4, 2013 ; w. romp and j. de haan, ‘ public capital and economic growth : a critical survey ’, perspektiven der wirtschaftspolitik, 8, 1, 2007 ; and p. r. d. bo