compete more directly with exports from the united states and japan or other emerging economies. the euro area is also helped by the composition of demand in emerging economies. this is tilted more towards goods than services, matching the composition of euro area exports better than that of other large advanced economies. therefore, in macroeconomic terms, the euro area ’ s trade relationship with emerging economies has been generally positive. conclusion in spite of the decoupling experienced in recent years, the fortunes of advanced and emerging economies are intimately linked. the growth of emerging economies has brought a much higher level of economic prosperity to hundreds of millions of their people. and their rising role means that today they share responsibility for global economic performance in half with the rest of the world. they account for almost 50 % of global gdp measured in purchasing power parity terms ( or just over one third of global gdp measured in market exchange rates ). in today ’ s global economy, advanced economies can face some of the same distress that was earlier associated with emerging economies : profound fiscal challenges, sudden stops in capital flows, macroeconomic retrenchment and forced reform. at the same time, and going forward, the emerging economies will be confronted with the challenges that have long concerned advanced economies : population ageing and, perhaps, reform fatigue. in spite of the current challenges faced by the global economy, we must resist temptation to resort to unilateral policies, and we must work together to ensure that the gains achieved are firmly secured for future generations. thank you for your attention. bis central bankers ’ speeches

mario draghi : continuity, consistency and credibility introductory remarks by mr mario draghi, president of the european central bank, at the 21st frankfurt european banking congress “ the big shift ”, frankfurt am main, 18 november 2011. * * * ladies and gentlemen, it is a privilege and a pleasure for me to be here today. as you know, this is the first time i ’ m speaking publicly as president of the european central bank outside the ecb. i could not think of a more appropriate occasion than the european banking congress in the ecb ’ s home town. i understand that this congress was established about 20 years ago to strengthen the position of frankfurt as a european financial centre, and thereby make the city attractive as a location – first for the european monetary institute and now for the ecb. well, i am pleased to see how successful it has been! before discussing the shift towards a much greater role of emerging economies, which is the theme of today ’ s congress, let me elaborate on the current situation in the euro area. i. the euro area situation and ecb monetary policy activity is expected to weaken in most of the advanced economies. this is the result of a weakening of various components of aggregate demand, both domestic and foreign. and it is evident in “ hard ” data as well as survey data. in the euro area, downside risks to the economic outlook have increased, and the weaker degree of activity will moderate price, cost and wage pressures. this is why the ecb decided to reduce its key interest rates by 25 basis points on 3 november, acting in full compliance with its mandate to maintain price stability in the medium term. we are aware of the current difficulties for banks due to the stress on sovereign bonds, the tightness of funding markets and the scarcity of eligible collateral. we are also aware of the problems of maturity mismatches on balance sheets, the challenges to raise levels of capital and the cyclical risks related to the downturn. in the money market, we see rising spreads between secured and unsecured segments, and a widening of repo prices between different types of collateral. interbank activity remains subdued and concentrated in the very short - term maturities. this limited activity is reflected in increased recourse to our liquidity - providing operations, as well as to our deposit facility. so far, the ecb has taken several non - standard measures to ensure that short - term funding does not represent a problem for euro area banks.