regulators alone. but the pra will seek to create a regulatory environment that stimulates and supports innovation and is responsive to the specifics of the uk environment. the bank and pra have already taken steps towards this direction. for example, in 2018 we launched a project called future of finance. the published report explored how the financial system might change over the next decade and what we need to do about it. [ 17 ] the pra has completed a number of the things we said we will do as part of the recommendations in the report, including modernising our policy on outsourcing arrangements, including a focus on cloud technology and setting out conditions that can help give firms assurance on its use [ 18 ], as well as carrying out a number of discussions and analyses around the use of artificial intelligence and machine learning. [ 19 ] we also set out a regulatory roadmap for firms to manage climate risks which should help firms to support their clients to manage the transition. but we want to do more. and we are learning from regulators around the world. for example : the us federal reserve offers ‘ office hours ’ to facilitate face - to - face discussions with individual firms about financial innovation. the singapore regulator is encouraging more fintech experimentation through a sandbox approach. the german regulator will organise international expert panels to discuss relevant innovation topics such as digital transformation and fostering artificial intelligence. we believe there is value in engaging with firms on innovation to make sure we give them the right regulatory tools to advance it. we therefore want to establish working groups and other stakeholder engagement avenues for the industry to tell us what the pra can do more to foster safe innovation. we have already proposed, as part of our commitment to establish a robust rule review framework, that we will pilot a stakeholder roundtable focussed on identifying rules that could benefit from a review. [ 24 ] i can announce today that we will also pilot a roundtable with interested stakeholders focussed specifically on innovation in regulation to take place in the first part of next year. depending on how useful all parties will find this pilot roundtable, we could expand it on other relevant areas, such as accessibility of the rulebook. reporting on innovation might be more challenging, as it is something that is not completely under the regulator ’ s control. i would prefer to be held to account based on the specific practical actions we take, rather than an imperfect metric. however, if the industry is willing to participate to the proposed roundtables i

ong chong tee : financial economics opening address by mr ong chong tee, deputy managing director of the monetary authority of singapore, at the skbi annual conference on “ financial economics ”, at singapore management university ( smu ), singapore, 7 may 2012. * * * professor arnoud de meyer, president of singapore management university distinguished guests, ladies and gentlemen, good morning. introduction it gives me great pleasure to join you today at skbi ’ s second annual conference on financial economics. since its establishment in 2008, skbi has pursued research on topics in economics and finance relevant to asia and the singapore economy. a recent working paper on “ testing for multiple bubbles ” by phillips, shi and yu, for example, sheds light on techniques for identifying asset price bubbles, and has useful implications for the surveillance strategies of central banks. 1 i am privileged to join an outstanding line - up of speakers including keynote speaker professor sir james mirrlees. i think some of you may be familiar with his groundbreaking work on optimal tax policy, and his modelling of the key role uncertainty plays in economics. the mirrlees review, a recent review of the uk tax system chaired by sir james, offers invaluable practical lessons on optimal tax design, including specific recommendations for the taxation of savings and wealth. structural change in the singapore economy the perfect financial storm of the recent crisis severely disrupted markets and economies, and also shook key tenets fundamental to our understanding of economics and finance. established beliefs in efficient markets, asset price dynamics, and more, have all been called into question. amid the flux in the global financial and economic landscape, singapore also has its own challenges. resource constraints mean that we have to restructure the economy to depend less on the labour force and more on productivity increases for growth. during this period of transition, important adjustments in domestic resource costs and consumer prices are taking place, alongside the usual cyclical developments confronting the economy. dealing with the confluence of factors affecting domestic prices has been particularly challenging, for us at the central bank and equally so for consumers and businesses. cpi - all items inflation, for instance, has been elevated coming out of the recent financial crisis, averaging 4. 1 % since 2010, much higher than the historical norm of below 2 %. mas core inflation, which excludes changes in accommodation and private road transport costs, averaged a lower 2. 0 % over the same period. consumer price pressures have picked up more recently. cpi - all items inflation