in any number of occupations that draw on economic thinking. you are also giving them the knowledge that they need to understand the macroeconomy, including the implications of decisions that the fed makes. economic educators impart knowledge that is instrumental in how the federal reserve promotes a healthy economy. in a way, when you are teaching students, you are also conducting monetary policy. but you do a lot more than that. teachers illuminate the world for us. they help us to see the limitless possibilities in life, and as much as that, also in ourselves. at a 1 / 2 bis - central bankers'speeches wonderful but also very vulnerable time in each of our lives, teachers like you are there to help us understand the world, especially when it is hard to understand. i will leave you with one of the many examples i could cite from my time in school. i can clearly recall one november day, in fifth grade, at blessed sacrament school here in washington, d. c. my teacher mrs. keller was called away from class. i adored mrs. keller, and when she returned to the room, i think every student was as upset as i was to see her tear - streaked face. and then we got the news - president john f. kennedy had been shot and killed in dallas. this was something that was very hard for my classmates and me to understand, but mrs. keller pulled herself together and convinced us that, somehow, everything was going to be all right. teachers are there for all of us, when we need your knowledge, your example, your encouragement, and your care. thank you for playing the indispensable role you do in our lives, and in our children's lives. and now, i would be very happy to respond to your questions. 2 / 2 bis - central bankers'speeches

reserve requirements, have allowed european banks to lock in funding for up to three years, thereby alleviating concerns about their near - term prospects. with the benefit of this support, european banks in turn have increased their holdings of sovereign debt, contributing to lower borrowing costs for some countries. second, euro - area leaders, the greek government, and private - sector holders of greek debt are taking steps to put greece on a more sustainable fiscal path. its sovereign debt has been significantly reduced, the greek authorities are intensifying their efforts to implement fiscal and structural reforms, and the european union and international monetary fund have pledged a considerable amount of new funds as part of a second assistance package. the greek economy remains in a deep recession, however. third and finally, leaders of most of the members of the european union have approved a new fiscal compact treaty that strengthens fiscal rules and their enforcement. this treaty represents a positive step toward resolving the fundamental tension inherent in having a bis central bankers ’ speeches monetary union without a fiscal union, and thus should help bolster the viability of the euro - area economy in the longer term. although progress has been made, more needs to be done. full resolution of the crisis will require a further strengthening of the european banking system ; a significant expansion of financial backstops, or “ firewalls, ” to guard against contagion in sovereign debt markets ; and, critically, continued efforts to increase economic growth and competitiveness and to reduce external imbalances in the troubled countries. actions taken by the federal reserve the federal reserve has followed developments in europe closely, and we are in frequent contact with key european policymakers. we are particularly focused on protecting u. s. financial institutions, businesses, and consumers from adverse financial and economic developments in europe. to help calm dollar funding markets and support the flow of credit to u. s. households and businesses, the federal reserve acted in concert with major foreign central banks to enhance the u. s. dollar swap facilities that were originally put in place during the global financial crisis and reestablished in may 2010. use of the reestablished lines was limited until late last year. however, in late november, the federal reserve agreed with the ecb and the central banks of canada, japan, switzerland, and the united kingdom to extend the swap lines through february 2013 and to reduce their pricing, from a spread of 100 basis points over the overnight index swap rate to 50 basis points. 1 the lower cost to the ecb