industries related with the fourth industrial revolution, we must collect the relevant base data and further study estimation methodologies. in this regard, the bank of korea has been reviewing whether the current gdp fully measures the digital economy and is preparing a work plan for possible improvement. next, we need to expand national accounts statistics to show the distributions of people's living standards, in addition to their averages. the oecd has made considerable progress in its research on distributional information of income and consumption by integrating macroeconomic indicators from national accounts with microdata from household surveys. i hope that progress will continue to be made in this area and that the oecd will soon provide feasible international guidelines. lastly, as countries try to estimate well - being indicators in various ways, we have to continue the research on how to increase the relevance of these indicators for policy makers. although quality of life measures have the advantage of showing various aspects of life, they have a number of weaknesses as policy tools. for example, it has been pointed out that the selection and weighting of relevant indicators can be subjective, and that the transmission mechanism between policy instruments and these indicators has not been sufficiently clarified yet. ladies and gentlemen! i have briefly laid out my views on the tasks of improving and supplementing gdp and well - being measures. to effectively address these challenges, continuous cooperation among academic institutions like the iariw, statistical agencies, and international organizations is essential. if this kind of multilateral cooperation can be achieved, i believe that the usefulness of gdp will be considerably increased and well - being could be measured in a more balanced way. i hope that this conference, through active and lively discussions, will lead to many creative and practical ideas on enhancing well - being measurement and the usefulness of gdp. thank you. april 26, 2017 governor juyeol lee

capital requirements they need to have. some banks are resisting this strongly. they argue that tighter regulations will drive financial transactions into the world of “ shadow banking ” where the activities will be regulated lightly. in my view, international banks need to accept tighter regulation, which will mean lower returns on capital in good years due to lower leverage. in return, this approach should help them avoid the frequent bis central bankers ’ speeches crises and losses of bank capital which have been seen in the last two decades or so. hence, in the long - term, bank shareholders should be no worse off as a result. finally, emerging / developing economies have been subject to wide swings in financing from abrupt withdrawal of funds in 2008 to significant inflows recently, and as a result they are starting to implement capital controls. the risk is that these may spread unless financial flows become less erratic and more long - term and stable. 7. concern about commodity bubble and high - yielding products over the past several decades, the world financial system has produced a seemingly endless series of bubbles ( e. g. the dotcom bubble, the housing bubble and the yen carry trade ). each bubble had its apologists before it burst, who argued that it was rational and that “ this time is different. ” historically, commodities ( apart from oil ) were in a downward trend for over 100 years until 2002. since then the entire decline has been reversed and commentators are talking about a “ paradigm shift. ” compared to historical trends, commodities are as over - priced as the us stock market during the “ tech bubble ” of 2000. the parabolic rise in commodity prices has serious consequences and it is open to question whether the world economy is strong enough to support their continued gains. it is particularly damaging to inflation and growth in emerging market economies which are relatively heavy users of commodities. with interest rates at current low levels, investors are looking for high - yield products ; but high yield brings high risks as well. for example, some banks are marketing synthetic etfs tracking an index which are not collateralised by the underlying investment in the index but by other assets with the return guaranteed by a swap with a counterparty which involves counterparty risk. some etfs are offering a leveraged return up to 3x that on the index. the imf, among others, has expressed its concerns ( in the financial stability report april 2011 ) and pointed out that the computer - driven trading used by these products could lead to another “ flash - crash ” like