2019 - 11 - 26. html 7 / 21 11 / 26 / 2019 employment and wages | speeches | rba its own. the share of 55 year olds and older that are employed is 35 per cent, compared to 22 per cent 20 years ago. this cohort effect is particularly clear in the third panel of graph 6. the much larger rise in female participation than males over the past two decades is a stark illustration of the effect, as the other drivers of participation in this age group should have similar influences on both male and female participation. graph 6 why are older people working longer? [ 7 ] one contributing factor is improved health. people are working longer because they can, both because of their own health and also because the nature of work has changed over the years towards services and away from manual work, which means most people are in less physically demanding jobs. it used to be the case that many older workers would have to choose between working full time and retiring. from a labour economics point of view, the labour / leisure trade - off has much more choice than it used to. [ 8 ] in the past, it was often an all or nothing decision. as the labour market has become more flexible over recent decades, older workers may be able to reduce their hours but still participate in the labour market. indeed, around one - third of workers aged 55 years and older are working part time, with over half doing so because they prefer to do so. the abs retirement and retirement intentions survey suggests that of people aged 45 years and older, https : / / www. rba. gov. au / speeches / 2019 / sp - dg - 2019 - 11 - 26. html 8 / 21 11 / 26 / 2019 employment and wages | speeches | rba around one - third of workers intend to cut down from full - time work to part - time work as they get older. as people live longer, they may want to work longer voluntarily, depending on the value they get from working. but they also may need to work longer to achieve the necessary income to support the standard of living they would like in retirement. access to a retirement pension or superannuation is a very significant element in the decision to retire. more than half of all retirees over 60 cite that reaching retirement age or becoming eligible for the pension / superannuation as the main reason they retired from work. the male participation rate begins to decline around age 50 and there is a noticeable change in the rate of

erkki liikanen : monetary policy in unconventional times speech by mr erkki liikanen, governor of the bank of finland, at an european central bank colloquium in honour of mr jose manuel gonzalez - paramo, member of the executive board of the european central bank, frankfurt am main, 16 may 2012. * * * session 1 – panel discussion on non - standard measures and monetary policy : what have we learned from recent experience? it is now nearly five years since the start of the financial market turmoil. during these five years, many dimensions of monetary policy have changed. i will touch on three such dimensions. each of them deals with links between monetary policy in the modern narrow sense and issues that, before the present crisis, were thought to be clearly distinct from it. during the last three or four years we have had to think thoroughly about the following : • the link between price stability and financial stability, • the link between monetary policy stance and its implementation, and • the link between monetary policy and fiscal policy. financial stability and price stability let me start from the relationship between financial stability and price stability. here, the crisis has inspired a lot of rethinking. some commentators, such as paul degrauwe1, have gone so far as to suggest that the crisis has revealed inflation targeting as a “ fallacy ”. others, such as lars svensson2 maintain their belief in strict, forecast - based inflation targeting. it may be useful to think of the relationship between financial stability and price stability as a continuum of views that falls between two extremes : at one extreme, financial stability would be elevated to the position of a new, additional objective for monetary policy, alongside with price stability. monetary policy would be about finding the right balance between financial stability considerations and price stability considerations. the other extreme is what used to be the prevailing view before the crisis ; namely, that price stability should remain the single ultimate monetary policy objective, and financial stability should enter monetary policy consideration only indirectly, to the extent it affects price stability. i don´t think that the price stability objective has failed. if a conflict has emerged between financial stability and some conceptions of inflation targeting, this cannot be held against ecb ’ s monetary policy strategy, which has always taken a medium - term view and takes monetary analysis and credit expansion explicitly into account when setting monetary policy. this is visible even today. the ecb has repeatedly stressed the importance of preventing a contraction in bank lending,