ship ’ s owners receiving compensation. in 1700, the ship returned to dublin and the captain, eoghan massey, claimed that his men had spent five years in captivity at the hands of algerian corsairs, who had used the ship to engage in acts of piracy. as compensation had been paid out two years previously, the ownership of the ship ’ s cargo became a matter of intense debate and controversy. the same panel of merchants, which had settled the debate in 1698 on the ship ’ s fate, met once more in order to decide that all monies remaining following the proper compensation of the owners should go towards a fund for the alleviation of poverty among dublin ’ s “ decayed merchants ”. out of this case emerged the ouzel galley society, which was founded to act as a permanent arbitration body to deal with similar shipping disputes that might arise. the ouzel galley society was wound up in 1888 and its functions subsumed by the dublin chamber of commerce and the commercial buildings company, whose premises and assets the bank purchased in 1963 to facilitate the building of the dame street tower. this is a unique archive collection documenting aspects of the economic and social history of ireland in the eighteenth and nineteeth centuries. the oldest record we hold is the imports and export ledger for ireland from the year 1786. in conclusion, i would like to cite the mission statement of the new service : “ the mission of the archive is to collect, preserve, promote and make accessible records charting the history of the bank and its contribution to the development of ireland. ” with those words in mind, i am delighted to officially launch the central bank of ireland archives. 2 / 2 bis central bankers'speeches

øystein olsen : financial economics and the challenges in managing norway ’ s government pension fund introductory remarks by mr øystein olsen, governor of norges bank ( central bank of norway ), at the nbim ( norges bank investment management ) financial research conference, oslo, 30 august 2011. * * * it is a great pleasure for me to welcome each of you to the first nbim financial research conference. the objective of today ’ s conference is to present and discuss a set of papers at the forefront of academic research on financial economics. this event is also part of norges bank ’ s efforts to strengthen ties with the academic community. in addition to some of the best researchers in financial economics, we have in this room some of the top investment professionals in norway. the opportunities for interesting discussions should be good. at the outset, the intention of this conference was to present leading academic research, without placing weight on its direct relevance to nbim. however, as this conference will show, there is considerable common ground between the research frontier of financial economics and our challenges in managing the government pension fund. over the last three decades, researchers have moved a long way from the capital asset pricing model. one important result of empirical financial research is that expected returns on traded assets vary much more over time and across assets, than was previously thought and implicitly assumed by the capm. researchers have documented and studied how asset valuations seem to move far more on news that affects risk premiums than on news on future cash flows. this was vividly illustrated by the market turbulence of 2008 – 2009, as well as the last few weeks. in their investigation of why risk premiums vary so much, researchers have moved far beyond the simplest models of introductory finance classes. theoretical progress, data availability and computational advances have made it possible to study the implications of potentially important features : investors are different and not necessarily fully informed or rational ; markets are incomplete and have frictions ; returns might have fat tails and face sudden disasters ; and government regulations are important. models of investor heterogeneity, non - tradable, non - financial risk, market frictions and timevarying uncertainty go a long way in accounting for variations in market risk premiums. this has profound implications for portfolio theory and practical portfolio strategies. modern portfolio theory builds on differences in defining characteristics between investors. investors with distinctly different non - tradable, non - financial risk, who are affected differently by market friction