stability. rather, it derives from the fact that some types of problem which initially affect only individual financial institutions may subsequently threaten the stability of the system as a whole. this contagion may not be fully in any individual firm's interests - or powers - to resolve, and it is this'gap in the market'which creates the need for public involvement via central banks. fortunately, banking crises do not occur every day of the week. but they do happen : an imf study counted 54 across the world between 1975 and 1997, of which 12 were in developed countries. such crises can have enormously harmful effects : recent bank of england analysis suggested that, over the past quarter century, total output losses during banking crises have averaged around 15 - 20 % of gdp in the countries in which they occurred. whilst the bank has responsibility for maintaining systemic stability, the day - to - day supervision of individual banks and other financial firms in the uk has been the responsibility of the financial services authority ( fsa ) since 1997. co - ordinating our system - wide perspective with the fsa's supervision of individual institutions and the treasury's legislative responsibilities is essential to the smooth functioning of the new arrangements. a memorandum of understanding, signed by the bank, the fsa and the treasury in october 1997, sets out our respective responsibilities, both in'normal'times, and in a crisis. and we work hard to foster these relationships, helped by the fact that i am a member of the fsa board and howard davies is a non - executive director of the bank. the three institutions also get together each month in the so - called'tripartite standing committee'to exchange information and discuss current threats to financial stability. i say once a month, but we meet more frequently than that when needed, as we have done for example over the past few weeks. what are some of those threats as i speak here today? we are, of course, still working our way through the implications of the dreadful events in the united states last month. uncertainty about the near - term outlook increased quite markedly following the attack, and this - together with the possibilities of supply - chain and market disruption, particularly in the us - contributed to some sharp adjustments in equity values. a number of sectors most closely affected by the terrorist attacks - in particular air travel and insurance - were badly hit. more recently, equities have rallied somewhat, suggesting that some of the earlier concerns may have been overdon

and the press, for the freedom of religion and labour, and for the freedom of trade and industry. democracy, equality and respect for human rights were, for him, the only way towards progress and the pursuit of happiness for the entire society. that was ten years before patrick henry and the declaration of independence of the thirteen colonies. those enlightenment values, which still underpin our economic and political models on both sides of the atlantic, are now being challenged both politically and socially, from inside and outside. politically, a populist and nationalist agenda appears tempting to many people. socially, the values of tolerance, liberalism and inclusion are increasingly under threat. to my mind, it is a common challenge for both of us, as americans and europeans, to defend the values of liberty and democracy, and the rule of law and rules - based world order. on this side of the pond, we realize the urgency of this effort, especially now as the role of europe as the standard - bearer for liberal democracy has become even more crucial. as the international system is built not only on rules and institutions, but also on trust and confidence, current policy uncertainty and the erosion of international cooperation are damaging to everyone. we need bolder joint efforts to steer the global economy towards a more sustainable future. in europe we want to keep the flame of global multilateralism alive. i hope our american friends will rejoin us and stay on board. many thanks for your attention, and enjoy the evening and stockholm. anticipating the wealth of nations : the selected works of anders chydenius ( 1729 – 1803 ) : edited by maren jonasson and pertti hyttinen with an introduction by lars magnusson, routledge studies in the history of economics, 2012. the federal reserve board has coined three questions : 1. “ can the federal reserve best meet its statutory objectives with its existing monetary policy strategy, or should it consider strategies that aim to reverse past misses of the inflation objective? " ; 2. “ are the existing monetary policy tools adequate to achieve and maintain maximum employment and price stability, or should the toolkit be expanded?, and 3. “ how can the fomc ’ s communication of its policy framework and implementation be improved? ". 4 / 4 bis central bankers'speeches