on november 26 and 27, 2012. now, let me introduce our first keynote speaker, professor andrew k. rose from university of california, berkeley. andrew k. rose is the b. t. rocca jr. professor of international business in the economic analysis and policy group, haas school of business at the university of california, berkeley. he serves as associate dean for academic affairs, and chair of the faculty. he is also a research associate of the nber ( national bureau of economic research, based in cambridge, ma ), and a research fellow of the cepr ( centre for economic policy research, london ). professor rose has published numerous articles in refereed economics journals, including the american economic review, the quarterly journal of economics, the review of economic studies, and the journal of finance. rose is interested in the theory and practice of economic policy, and his research addresses issues in international trade, finance, and macroeconomics. bis central bankers ’ speeches

”. contagion has become an issue after the asian financial crisis. to define contagion is not a trivial issue. did countries suffer from crises in other economies because they were fundamentally in a similar position? or were economies infected despite sound fundamentals? how and when does contagion happen? can a country effectively “ immunise ” itself from contagion? tomorrow ’ s session will start with a panel on “ exchange rate regimes and worldwide stability ”. exchange rate regimes are among the main suspects in creating financial instability - if domestic macroeconomic policies are not in line with the chosen exchange rate regime. in choosing an exchange rate regime, it has to be decided which is more important : the advantages afforded by flexibility for domestic policy or the monetary policy credibility that may be gained by an external anchor. contrary to the widely held bipolar view, intermediate exchange rate regimes have shown some durability. how can the choice of exchange rate systems contribute to worldwide stability? a panel on “ internationalisation of banks and the risk implications ” will attempt to shed light on the impact of banks ’ international assets on financial stability. it will strive to enquire into the net effect of financial institutions ’ international portfolio diversification on financial stability. the stabilising effects of international portfolio diversification contrast with potentially destabilising effects resulting from faulty risk assessment due to information asymmetries. the fifth and last panel of this conference will explore financial stability issues of “ financial systems in emerging markets ”. as regards investing financial institutions, the question is which specific risks they incur when “ setting up shop ” in emerging markets. as regards emerging markets, the internationalisation of the financial system has been deemed as both a blessing and a curse. host countries sometimes fear that an internationalisation of their banking systems, eg via foreign direct investment, will entail more volatility and more vulnerability. however, the east european has shown that internationalisation has had very positive effects on the efficiency of their financial systems and the economy in general. 4. concluding remarks this conference is academic in nature ; the majority of speakers therefore come from academia. thank you all for contributing to the second conference of the monetary stability foundation. i am glad that the bundesbank has again been successful in talking several distinguished policy makers into speaking at this conference. thank you for enhancing theoretical approaches with the view from the business of policy making. i am especially delighted that jean - claude trichet will join us tonight and will speak