developments, one of the top priorities on the global agenda. in line with our country's " 2053 net zero emission " and " green development " targets, we took a role on national and international platforms to contribute to the combat with climate change in the fields that fall under our bank's remit. in the period ahead, we will continue to monitor the economic and financial implications of climate change and sustain our cooperation with national and international stakeholders on this matter. we, at the central bank, will be working intensively for permanent achievement and sustainability in all matters related to price stability and financial stability, particularly monetary policies, with the pride and sense of responsibility of celebrating the centenary of our republic, at the istanbul financial center, the construction of which will be completed this year. distinguished guests, concluding my remarks, i would like to thank my esteemed colleagues for their painstaking efforts to support our bank in its activities, and also would like to pay my respects to you all for your participation. 4 / 4 bis - central bankers'speeches

durmus yilmaz : globalization and monetary policy speech by mr durmus yilmaz, governor of the central bank of the republic of turkey, at the conference on “ globalization, inflation and monetary policy ”, istanbul, 21 november 2008. * * * dear guests, i would like to welcome you all to the conference on “ globalization, inflation and monetary policy ”, organized by the central bank of turkey. this conference will host a select group of central bankers, experts and academics today and tomorrow. it is a great pleasure for us to host this conference and such a distinguished group of participants. during these two days we will have the opportunity to discuss the globalization and monetary policy aspects in the context of current financial turmoil. dear guests, we have in the midst of fast changing economic agenda. when invited to an international conference in the spring of 2008, i was requested to make a speech on inflationist pressures faced by world economies. the title of the session was “ inflation : is it back to stay? ”. in fall 2008, a few weeks before the start of the conference, the organizers informed me that they had changed the theme of the conference. the new title was “ how to cope with deflationary risks? ”. in a very short span, the main talking points of the policy makers have shifted from “ decoupling ”, “ high energy prices ” and “ food inflation ” to “ deflation ”, “ recession ” and “ credit crunch ”. today, international financial system shaped more and more by globalization is on the brink of a crucial stage. the problems, which started in sub - prime mortgage markets in the united states, have spread the whole financial system and reached a point that threatens the economic stability. indicators on risk perceptions are at its highest level of all times. we have witnessed some relief in the liquidity shortage after the establishment of temporary reciprocal currency arrangements of federal reserve bank ( fed ) and short term liquidity facility established by imf, which is designed to help member countries that are facing temporary liquidity problems in the global capital markets. however, despite these measures, liquidity squeeze in the credit markets and reluctance in bank ’ s tendency to lend credit have been unabated. one of the adverse features of the current crisis is the freeze in the private credit and the tendency of capital to flow back to where the current crisis originated. recent readings on economic activities suggest that ongoing problems in international credit markets have spilled over into the real economy as