zeti akhtar aziz : growth and development of the world economy welcoming remarks by dr zeti akhtar aziz, governor of the central bank of malaysia ( bank negara malaysia ), at the official opening of the world bank group knowledge and research hub in malaysia, sasana kijang, kuala lumpur, 28 march 2016. * * * it is my great honour to welcome the distinguished senior leadership of the world bank group, dr axel van trotsenburg, vice president of development finance ; and dr kaushik basu, chief economist and senior vice president, to the master lecture on'shared prosperity'by dr kaushik basu. the lecture is held in conjunction with the official opening of the world bank group knowledge and research hub in sasana kijang later this afternoon. as we meet today, the global economy is confronted with an immensely challenging environment. a slower than anticipated growth in several major economies, the sharp decline in commodity and energy prices, the significant shifts in global liquidity, and the heightened geopolitical tensions are having far reaching and widespread implications. going forward, the challenge for both the advanced and emerging economies is to lift growth trajectories and search for sustainable growth factors that can rebuild economic fundamentals, address structural vulnerabilities and forge new sources of growth. key is the " sustainability " and strengthening of the growth and development of the world economy. an important aspect in this process is that economic growth and development, no matter how stellar, will begin to fade when inequality sets in and when income disparities widen. experience has also shown that financial crisis and economic recession entrenches the cycle of poverty. during a financial crisis, the poor lose their income by several times more compared with the average household. we saw this happen during the recent global financial crisis, and we also saw how many that were displaced suffered " hysteresis " thus deeply affecting their income prospects. we also risk facing a severe setback in our fight against poverty. in the more recent years, the international community has accorded greater attention to addressing this agenda and to achieving more balanced and inclusive growth. malaysia, while achieving growth and progress since the 1960s has always given attention for it to be a shared prosperity. given the role of the financial system in facilitating this, bank negara malaysia has always given priority to the financial inclusion agenda to not only bring the underserved segments of society into the financial mainstream but to promote a more effective participation

klaas knot : monetary policy and the great financial crisis speech by mr klaas knot, president of the netherlands bank, at the third annual nyenrode finance day, breukelen, 28 october 2011. * * * the past four years have been tumultuous for the global financial system and the global economy in an unprecedented way for all of us. the eruption of a systemic financial crisis of quite unusual intensity and international reach has been compared to the widespread shutdown of international capital markets on the eve of the first world war. the violent unraveling of events has shaken many beliefs in the economics profession. and the threat of a collapse of the world economy similar to the great depression has prompted unprecedented policy responses. monetary policy makers reacted to the crisis by deploying both conventional and unconventional tools. in this speech, i want to discuss how the conduct of monetary policy in the euro area has evolved during the different stages of the crisis and the challenges it is currently facing. to put this discussion in perspective, let me start by recalling the ecb ’ s mandate to deliver price stability, as is anchored in the maastricht treaty. pursuing this mandate requires that a number of elements are in place. first, there has to be a credible commitment to price stability as a primary goal of monetary policy. a credible commitment implies that the public ’ s long - run expectations about inflation are anchored by the ecb ’ s definition of price stability – hicp inflation below but close to 2 %. second, monetary policy has to be transparent and monetary authorities must be accountable for their decisions. this implies a need for clear and effective communication. third, monetary policy decisions have to be taken in full independence from political influence. this principle is laid down in the maastricht treaty. it implies the strict prohibition of monetary financing. fourth, monetary policy has a medium - term orientation, given the long and variable lags of the monetary transmission mechanism. fifth, monetary policy is underpinned by a comprehensive analytical framework, which rests on two pillars : the economic analysis and the monetary analysis. i should note that the crisis has shown how the monetary analysis can play an important role in signalling financial imbalances and vulnerabilities. it is an important input in a strategy of “ leaning against the wind ”. finally, monetary policy follows a so - called “ separation principle ”, which distinguishes decisions about the monetary stance aimed at achieving price stability from tools directed at implementing monetary