perhaps, part of the problem of the slow response of the credit providers and suppliers of funds is that, bailouts notwithstanding, suppliers are aware that the corrective aspect of the matter has not moved far beyond problem identification. indeed, while there has been a fair degree of consensus on problem identification, the authorities have not approached the matter of remediation of the regulatory and oversight issues with the same immediacy as they have the bailouts. there seems to be the view that this can be done in a more leisurely fashion. however, market participants may not be of this view, hence the reluctance to open the credit markets. lender of last resort facilities – how wide should it extend? investment banks have been the most significant players in the international credit markets but the issue of lender of last resort facilities to the non banks and insurance companies in post crisis situation needs also to be addressed. it is not clear that crisis - related lender of last resort facilities are intended to become a statutory right. will the involvement in the us of government and of the fed as providers of liquidity become a continuing source of funds availability going forward? what lessons are there here for other central banks. and will the face of central banking change in the light of these expectations? what are the conflict of interest implications of such involvement, and what are the implications for risk – taking? in many of the situations of involvement of the regulatory authority, the problem can arise also of an appropriate exit strategy. this should be identified early. the cost of financial crisis and who bears it at the global level, seriously affected developing countries and emerging markets who can least accommodate the global recession which has resulted from the failure of several major financial institutions, are looking at ways to pass on some of the business costs of these collapses and near collapses away from their countries and institutions, but find that there is no scope for so doing, as they remain price takers in the credit markets, in a situation worsened by unavailability of financing. it is important that these costs be shared by the creators of these difficulties. this introduces moral obligation problems whose solutions are difficult to pinpoint. it is noted that while additional borrowing on flexible terms from the imf is appreciated many emerging markets are highly indebted and therefore require grants and not financing. this is so even for middle - income countries which have no fiscal space. reform of the incentive system perverse incentive systems in the industry have been identified as areas in need of review.

delisle worrell : economic research as a practical guide to policy opening remarks by dr delisle worrell, governor of the central bank of barbados, at the central bank of barbados ’ 33rd annual review seminar, bridgetown, 23 july 2013. * * * i am, as many of you will know, an accidental central banker. if sir courtney blackman had not actively sought me out at uwi mona to establish the research dept of the new barbados central bank in 1972, i would have pursued my career as an academic, as was always my intention. however, i quickly discovered that the central bank can be the most rewarding career for an economist, because at the central bank you can bridge the gap between academics and policy making that affects the lives and welfare of real people. practicality has been the hallmark of all my economic research, and my motivation continues to be the desire to better understand why people undertake commercial transactions, so that policy makers may guide us towards transactions that uplift the community, and away from actions that are self - defeating. this bias towards research that captures deep economic insights, and is practical, intuitive and that may be applied to the issues of the day, is manifest in much of the research you will find published on the central bank of barbados website. let me cite you a few recent examples. in april this year, as you should know, central bank introduced a new policy to provide guidance to financial markets on interest rates. that policy was informed by research published under the title “ a framework for interest rate policy in barbados ”, which you may consult on the website. the research established that us t - bill rates and the volume of excess funds in banks are the most important factors affecting local rates. in 2011 the bank made a change in policy pertaining to the foreign exchange market, which was informed by the publication “ an analysis of central bank intervention in the barbadian foreign exchange market. ” in 2011 the bank published “ an analysis of the tourism sector in barbados ”, in which we measured barbados ’ competitiveness in the us, uk and canada in terms of market share. the study investigated how market share has been affected by “ shocks ” which have impacted caribbean and world tourism, and the factors affecting the utilization of existing tourist capacity as well as factors affecting hotel construction and investment in other tourism and ancillary services and infrastructure. “ a note on tourism expenditure ”, also published that year, broke down barbados ’ tourism performance in the uk by country