manner consistent with policy - makers ’ intentions at all maturities. second, interest rate reductions have been reinforced by our non - standard monetary policy measures. these policies have made financial intermediaries less reluctant to pass on the degree of credit easing that the ecb wanted to implement. all in all, there are encouraging signs that the substantial stimulus introduced is gradually bearing fruit. the negative inflationary readings over the summer have been due to large declines in the price of crude oil in relation to the previous year. in this sense, the fall in inflation – by boosting the purchasing power of our citizens – has acted as an automatic stabiliser at a time in which the economic conditions were deteriorating. inflation expectations are a good measure of the degree to which the free fall in the economy and the dis - inflationary process could come to feed upon itself. they have remained stable around levels consistent with our definition of price stability. the economy, too, is showing signs of stabilisation. after the strongly negative readings recorded earlier this year, economic activity in the second quarter is estimated to have declined by 0. 2 % relative to the previous quarter. in the period ahead, we expect to see a very gradual recovery. while the statistical risks to this outlook remain broadly balanced, there is no room for complacency and we are, as always, alert to any unexpected developments. on the upside, the impact of the macroeconomic stimulus packages and other policy measures may prove to be stronger than currently foreseen. on the downside, the negative feedback between the real economy and the still strained financial sector may prove more protracted than expected. vi. lessons to be learnt what lessons can we learn from the financial crisis that has shaken our world so profoundly? the crisis has exposed the fundamental fragility of the international financial system. i had mentioned that the macroeconomic situation shows signs of stabilisation. we expect a very gradual recovery ahead, but substantial risks remain. we have to consider all aspects of finance very seriously. the financial system needs to be as immunised as possible against its intrinsic tendency towards complacency, irresponsibility and self - destruction. three intrinsic weaknesses need correction. • first, the pro - cyclicality of the financial system needs to be mitigated by mechanisms that can provide built - in stabilisers. the quality and quantity of bank capital and banks ’ liquidity buffers have to be improved in good times to provide a sufficient buffer

in management positions within the bank. at the bank, we provide our staff with opportunities to further develop their knowledge and skills. therefore, we offer our staff with the possibility of flexible working hours if employees are following a graduate development program. also, our staff has the opportunity to attend courses at international institutions such as the international monetary fund, the world bank, the us security and exchange commission, the federal reserve bank, the bank of international settlements, de nederlandse bank, the center for monetary studies for latin america and the caribbean ( cemla ) and other regional and international multilateral bodies. every year we sign a career plan with our staff that includes the courses and seminars they should attend during that year to advance to a higher level. because the balance between work and private life is important, the bank has a system of flexible working hours that allows employees to pursue their professional career consistent with their private life. ladies and gentlemen, as today ’ s audience comprises mainly professional women, i would like to conclude these remarks by sharing the following with you. in 2003, fortune magazine conducted interviews with women in top positions in business, academia, and government in the united states. several of the interviewed women admitted that they had neither actively planned their career development nor sought promotion, and when they had been offered promotion, they had hesitated before accepting it. in some cases, they had even turned down promotion when they thought it would conflict with their quality of life. it should not be a surprise to you, however, if i tell that this behavior is not unique to the united states. here on the island as well, i have met many women demonstrating similar behavior. this constrain imposed by society on women, be it culturally or historically motivated, is not consistent with the progress we have made in terms of education and equality in other areas that concern our female citizens. it runs counter to their own self - interest and the interest of the society as a whole. we have argued that an increased female labor participation rate will increase per capita income, reduce poverty and promote long - term economic growth. in the era of an aging population, upward mobility of female workers through the career ladder will encourage increased participation of female workers and therefore broaden the economic base to sustain the social safety nets. i therefore would like to recommend that you all believe in your own potential, make your choices, plan your career path, and work on your career. remember that the only person who owes you anything is you. i would