that, in comparison to the past, now the effects of changes in relative prices over inflation tend to be transitory and of lower magnitude. this has contributed to the deepening of the mexican financial system. back in 1994, the mexican government could borrow to a maximum term of one week. today the mexican government regularly issues bonds in pesos at fixed rates of interest with a maturity of 30 years. moreover, with lower inflation, the ratio of private sector credit to gdp has increased since the mid - 2000s, contributing to higher sustainable growth. financial inclusion has deepened, reaching the base of the pyramid. today mexico ’ s financial system is wellcapitalized and the bank of mexico ’ s international reserves are at historic highs. i have spoken of the importance of vigilance. the board of governors of the bank of mexico has sought to enhance confidence in the institution and improve the effectiveness of its monetary policy by adjusting it as required and becoming more open about how its decisions are taken. this openness, this greater transparency and accountability, have helped the bank of mexico achieve two key goals. first, this has enhanced the legitimacy of monetary policy. second, with greater trust in the institution, the bank of mexico is able to take less aggressive measures than might otherwise be required to counter any given economic shock. this means lower social costs for achieving our inflation target. the bottomline : creating and nurturing the right institutions is essential for good policy over time. * * * let me wrap up. again, class of 2017, i sincerely congratulate you. now may you go out into the real world and make good policies, and then continue, vigilantly, to make them even better. thank you very much.

##ved globally between 1990 and 2015. − thanks to greater labour mobility, today about 260 million people live in a foreign country, up from less than 80 million in 1970, and flows among developing countries now exceed those towards advanced economies. however, not everybody has benefited in the same way from the economic expansion provided by trade and innovation. economic backwardness, poverty and high mortality rates are still dramatic problems in many developing countries, especially in sub - saharan africa. even in the more prosperous countries, many have been left behind. inequality in the distribution of income has declined dramatically over the last three decades at a global level, mainly as a result of the fast growth of china and other emerging markets that has reduced their distance from the richer parts of the world. however, within most countries differences in income and wealth have risen to historically high levels. finally, the rapid pace of technological progress and its unprecedented nature make it possible not only to replace physical labour but even to displace intellectual contributions in a variety of tasks once believed to be a prerogative of humans. this has raised fears of a new form of technological unemployment, to which the medium - skilled population is also vulnerable, and has helped to spread a sense of insecurity, raising the demand for protection. the two other factors shaping our present and future conditions – demographic transition and climate change – are not independent from, and have actually been reinforced by, global economic integration and technological progress. higher living standards and wider access to better healthcare have increased life expectancy across the globe. for the first time in our history, the world faces not only a growing population – estimated to reach almost 10 billion in 2050, up from 7. 5 billion today ( and 2. 5 billion in 1950 ) – but also an ageing one : there are almost 1 billion people aged 60 or over in the world ( 13 per cent of the global population ) and this age group is growing faster ( at 3 per cent per year ) than younger age groups. in most advanced countries, as well as in china, declining birth rates, with increased life expectancy, are pushing up the so - called old - age dependency ratio, the population over 64 relative to the working - age population ( aged 15 to 64 ). in europe, ageing is progressing at a very fast rate : in italy, the old age dependency ratio has risen from 12 per cent in 1950 to more than 35 today ; in germany, from 14 to 32 per cent. demographic transition,