andrew sentance : the challenges of the “ new global economy ” speech by mr andrew sentance, external member of the monetary policy committee of the bank of england, at the jersey chamber of commerce, st helier, 25 may 2011. all speeches are available online at www. bankofengland. co. uk / publications / speeches. * * * i would like to thank adrian chiu for research assistance and i am also grateful for helpful comments from other colleagues. the views expressed are my own and do not necessarily reflect those of the bank of england or other members of the monetary policy committee. it is a great pleasure to have this opportunity to speak here today at your annual general meeting lunch and i am extremely grateful to ray shead and the jersey chamber of commerce for inviting me and helping to arrange this visit. for you here in jersey, this event is a first – as i believe it is the first major speech which a member of the bank of england monetary policy committee has given in jersey or any of the other channel islands. hopefully i am blazing a trail for my mpc colleagues to follow in the future! for me, however, it marks the close of a chapter. this is my last public speech as a member of the bank of england monetary policy committee ( mpc ), as my term in office comes to an end this month. i have spent just over four and a half years as a member of the mpc and it has been a most eventful period to be involved with economic policy - making. my period on the committee has been dominated by the global financial crisis and the major global recession it triggered in late 2008 and early 2009. however, the global recession is now behind us, even if we are still feeling some if its after - effects. since the second half of 2009, the world economy has been in a recovery phase and the uk and most other european economies have shared in this return to growth. indeed, the growth of the uk economy has tracked very closely the average performance of the european union through the recession and into the early phases of the recovery, as chart 1 shows. and current forecasts point to a continuation of this pattern this year and next. chart 1 – uk and eu output growth, 1997 – 2012 percentage change in real gdp - 1 - 2 uk ( exc. oil and gas ) * - 3 eu - 27 * - 4 - 5 - 6 * : 2011 and 2012 are imf forecasts. forecasts for the

for development and influencing the impact of borrowings on the profile and structure of total external debt. a continuing review of bangko sentral regulations governing external debt and other foreign exchange transactions is likewise undertaken to keep our rules attuned with current global and domestic conditions and to foster a regulatory environment that supports the objective to achieve inclusive growth for the country. in all these undertakings, a good monitoring system is indispensable. flares allows us to perform all these with relative ease and accuracy. conclusion i have, on a number of occasions in the past, said that the philippines managed to “ survive ” today ’ s crisis, because we purposed to invest in the reforms yesterday …. and today, ladies and gentlemen, we add flares to the list of governance reforms we have instituted. as we enlist public and private sector entities to enroll in flares and encourage more banks to participate, it is my hope that flares would indeed help us better manage our external debt. in turn, i hope this will ensure and protect our desired trajectory of sustained higher economic growth. maraming salamat sa inyong pagdalo at pakikinig. bis central bankers ’ speeches