here and elsewhere, and the realisation that substantial adjustments to balance sheets were called for. so it should not be surprising that the recovery since the middle of 2009 has been so muted. monetary policy can – up to a point – play a smoothing role in such circumstances by encouraging households and businesses to bring forward spending from the future to the present. and other, more targeted, central bank policies can help unblock dysfunctional markets or else, as with the funding for lending scheme, support the supply of credit. we stand ready to take further such action should it be warranted. but such policies cannot – and should not seek to – prevent the necessary de - leveraging and rebalancing of production away from non - tradables towards tradables. that is a real process that takes time and means that the recovery is likely to remain somewhat subdued by historical standards. thank you! see bean et al. ( 2011 ). bis central bankers ’ speeches annex the model used for the simulations is standard in the monetary policy literature and comprises just two equations. the first is the demand for goods and services ( a dynamic is curve ) : xt = etxt + 1 – ( it – ett + 1 – rt ), where xt is the output gap, t is the deviation of inflation from target ( the inflation gap ), it is the nominal policy rate, rt is the natural real rate of interest, and et denotes a rational expectation. this makes the level of demand today a decreasing function of present and future expected real interest rates. a fall in demand can then be simulated by reducing the natural real rate of interest, rt, which is then allowed to unwind gradually. the second equation describes the supply side and embeds within it an assumption that prices are sticky ( a new keynesian phillips curve ) : t = ett + 1 + xt. this makes inflation an increasing function of present and future expected output gaps. in the baseline model, = 0. 6 ; = 0. 025 ; and =. 99 ; in the low interest elasticity variant, = 0. 2. the loss function that the policy maker wants to minimise takes the form : vt + etvt + 1 + 2etvt + 2 +..., where vt = t2 + xt2 / 6. under a nominal gdp target, the above expression for vt is replaced by : vt = ( yt – y * t ) 2, where

duty of care to educate their members about the investments realities so that they can better understand such issues. i dare add that this is not the only subject of financial inclusion and financial education that has to be addressed. the matter also involves educating the non membership general public in financial matters including the dangers and pitfalls of fast money schemes which have a tendency to “ play hide and seek ”. they disappear and re ‐ emerge in one form or another. your members can assist by spreading the word about the risks and pitfalls of fast money schemes. through your various points of representation, such as this service centre, your membership can also assist with educating each other and others on other financial matters including the clean banknote policy. for us to be aware when to return or exchange an old bank note for a new one and not wait for the note to be torn and faded. for the public to have and enjoy the benefit of using clean notes. the rate of growth of the major super fund ’ s also increases the scope and magnitude for the areas of responsibility and accountability requiring prudential management of members ’ funds. as such the asfs trustees must always ensure that their investment decisions are made in a sound and prudent fashion in accordance with the act and prudential standards set by the bank as the trustee is entrusted with the responsibility of ensuring that members ’ superannuation savings are preserved and secured at all times for their future retirement benefit. i see the new nambawan super ’ member services centre here in port moresby as another positive initiative in enhancing effective delivery of superannuation products and services to the members and i would like to encourage nambawan super and other asfs to continue such enhancement exercises into other regions or provinces of the country in a commercially responsible manner where the members are also located so that the members can be better served. with the current and potential growth in the economy of papua new guinea, this will see more employment opportunities and increased demand for banking, finance and superannuation products and services throughout the country. it is therefore good to see that the superannuation industry is moving in this direction to better serve the needs of its members throughout papua new guinea. i now have the pleasure of declaring this new nambawan super member services centre officially opened.