on the other hand, are not exposed to losses – except in the case of insolvency. in the usa, the integrated markets for capital cushion around 40 % of total cyclical fluctuations between the us federal states. if a regional economic downturn were to occur, the enterprises ’ loss in earnings in one state would then be distributed between shareholders in other states, just as these would also benefit from increased profits in a boom. only 25 % of cyclical fluctuations are smoothed via the credit markets, where losses are shared only in the event of an insolvency. fiscal mechanisms cushion just 20 % of economic shocks. 4 studies for the german federal states come to similar conclusions. deeper integration of european capital markets could thus make a key contribution to improving the absorption of macroeconomic shocks and the impact of heterogeneous economic developments in the euro area. the more the capital markets exercise this buffer function, the less fiscal policy will be responsible for stabilising the economy, which has a knock - on impact on government debt. after all, experience has shown that in an upturn it is often not possible to repay debt that was incurred in a downturn to stabilise the economy. in turn, there is less pressure on monetary policymakers to support expansionary fiscal policy by easing monetary policy. monetary policy can thus become more stable. 7. closing remarks ladies and gentlemen, while monetary policy is able to have a short - term impact on demand in terms of safeguarding monetary stability and thus to support the economy, it cannot solve the central challenge facing the euro area, namely weak growth prospects. there will only be a sustained rise in growth and wealth in our monetary union if we cut existing red tape and promote competition. to conclude, i would like to again quote will rogers. “ there is no better place in the world to find out the shortcomings of each other than in a conference. ” if i have understood correctly, i believe that it is now up to you to do just that in the next few minutes, mr kister. i look forward to our discussion! m hoffmann and b sorensen, don ’ t expect too much from ez fiscal union – and complete the unfinished integration of european capital markets! voxeu, 9 november 2012. bis central bankers ’ speeches

t t mboweni : the relationship between the south african reserve bank and academia welcoming address by mr t t mboweni, governor of the south african reserve bank, at the first “ macroeconomic policy challenges for south africa ” conference, held at the south african reserve bank, pretoria, 23 october 2006. * * * honoured guests, colleagues, ladies and gentlemen, 1. introduction it is with great pleasure that i welcome you to pretoria on the occasion of the first south african reserve bank ( bank ) conference entitled “ macroeconomic policy challenges for south africa ”. i would like to extend a warm welcome to the keynote speakers and presenters of the papers and to all the discussants who will be participating in our proceedings. all those attending the conference are likewise heartily welcomed and we hope you will participate actively in the series of discussions. this conference is the first in a series of conferences that the bank plans to hold every second year. it is our contribution to a process of open interaction between economists concerned with macroeconomic and central banking issues. the conference series should further serve as a vehicle for bringing together researchers from academic and financial institutions. the main purpose is to provide a platform where current ideas on macroeconomic issues can be shared. this should signal clearly our commitment to a continuous and active exchange of information between the bank, academia and private - sector economists. this initiative has been inspired by the examples set by a number of central banks. other central banks that host similar conferences in collaboration with universities include the central bank of chile, the european central bank, the federal reserve banks in the united states, the swiss national bank, the bank of canada, and the deutsche bundesbank. generally, the aim is to facilitate debate on monetary policy and related issues. our economists regularly participate in some of these conferences and we are pleased to be able to provide a similar forum. the proceedings of the conference will be published, in order to reach a wider audience. 2. the relationship between the bank and academia the bank ’ s relationship with local universities has been evolving over time. in 1994 the bank launched a 12 - month cadet programme providing young graduates with high potential the opportunity to learn more about the operations of a central bank and to gain first - hand practical experience. the programme is managed by the sarb college in collaboration with subject experts from leading local and international academic institutions. to offer life - long learning opportunities to these learners, the college has embarked on a process to develop and register qualifications on the national qualifications