independent financial supervisor. this is because short - term incentives to relax supervisory policies may have important consequences for financial stability in the long run, which may, in turn, also affect monetary policy - making. moreover, this argument applies to both micro - and macro - prudential supervision. the importance of independence in this field is actually recognised worldwide and enshrined in the basel " core principles for effective banking supervision ". the basel core principles are part of the " key standards for sound financial systems " laid down by the financial stability board ( fsb ) that warrant priority implementation, depending 1 / 3 bis - central bankers'speeches on country - specific circumstances. moreover, implementation of these principles is generally assessed through the imf / world bank financial sector assessment programs ( fsap ). allow me now to make four general points on the topic of policy coordination in a globalised world, focusing again on the financial stability domain. first, i think it is helpful to take a step backwards to review the rationale for international cooperation and global standards when it comes to the financial and banking system. the history of banking crises has painfully illustrated that financial stability is a global public good, with the costs of systemic banking crises often exceeding 100 % of a country's gdp. yet, if each jurisdiction is left to itself when it comes to safeguarding financial stability, the cross - border spillovers of financial distress can result in individual jurisdictions " underinvesting " in financial stability. that is why global cooperation is needed. another way to think about this is to build on helene rey's seminal work on the monetary policy dilemma / trilemma, which has an analogy in the area of financial stability, as pointed out by dirk schoenmaker. in short, any two of global financial stability, financial integration or national financial policies can be achieved, but not all three at the same time. the main message is that if we want to live in a world with an open global financial system, then safeguarding financial stability requires a set of minimum global standards. failure on this count could result in regulatory fragmentation, regulatory arbitrage and an uneven playing field for internationally active banks. this philosophy is what drives the work of the basel committee, and it underpins a common set of shared values among our members. thus, it came as no surprise that the committee – including under stefan ingves'chairmanship – was able to coalesce around the basel iii reforms, given the mutual interest

john hurley : schools ’ information pack on price stability speech by mr john hurley, governor of the central bank and financial services authority of ireland, at the launch of the schools ’ information pack on price stability, dublin, 24 january 2006. * * * a aire agus a dhaoine uaisle. dia dhibh go leir agus cead mile failte romhaibh go dti an banc ceannais. minister, president of the business studies teachers association and guests, you are all very welcome to the central bank. i am delighted that you could be with us today as we launch this new schools ’ information pack, price stability : why is it important to you. i am particularly happy to also welcome the students and their teachers today from marian college, st. mary ’ s cbs, st. vincent ’ s secondary school, scoil caitriona and st. mary ’ s college. they have come from various parts of the country to be with us today. i hope you ’ re not missing too many important classes as a result! developed by the european central bank and the 12 national central banks of the euro area, including, of course, our own central bank, this is a unique initiative. for the first time, the central banks of the euro area have produced a single cross - border education pack. it is being distributed to 50, 000 secondary schools, not only in ireland, but throughout the 12 countries that share the euro as their currency. i would like to say at the outset that i am delighted that the central bank has an opportunity to be involved in this way with the education of irish students on issues which are relevant in all our lives. while setting monetary policy and ensuring price stability may not seem on the surface to be one the most interesting of topics for young adults, i can assure you that it has a significant impact on the lives of each and every one of the 300 million people of the euro area. this information pack, i hope, helps to make it a little more interesting than you might expect and maybe even a little bit enjoyable, if that is possible! now, i ’ m sure that many young students will probably think, “ well, price stability is not actually that important to me … ” but in fact, stable prices and low inflation are a guarantee that your pocket money or savings from your summer or weekend jobs can buy you the things you want throughout the year. stable prices also help promote economic growth and