will be in your decision - making. we don ’ t want to control every small bank directly ; we will work together with national supervisors. sz : according to the plans, the ecb will have to report on its supervision business to the european parliament once a year. is that enough? draghi : we surely need substantial democratic accountability here, and it is up to the legislators to establish what they consider necessary. sz : do you personally know people who have suffered from the euro crisis? draghi : i have visited many smes whose credit was cut in the crisis and who have gone out of business. and i am not talking about only italian businesses. bis central bankers ’ speeches sz : how uncomfortable do you feel in the country of the bundesbank? draghi : i have often said that the bundesbank is a great institution, and i respect it very much. it would be great if we could always work together. we have done that many times, but at the moment, we have different opinions on the best way to react to the crisis. we all share the same objective of delivering on price stability, but we are not in full agreement about the best way to achieve that. sz : and the german people? draghi : we need to explain what we do better in germany, which our intentions are and what precautions we are taking. sz : you could speak to the bundestag. draghi : it would be an opportunity to explain what we do in greater detail. if i am invited, i would be very happy to go there. bis central bankers ’ speeches

random walks ” is still the basis of the best practice followed by many institutions. this paper marked the beginning of professor rogoff ’ s long - standing prominence in the field of international finance and was followed by a steady flow of equally distinguished contributions, in some instances literally rewriting history. this was the case with “ the modern history of exchange rate arrangements : a reinterpretation ” co - authored with carmen reinhart and published in the quarterly journal of economics in 2004. professor rogoff has also been at the forefront of modelling efforts in the field of international macroeconomics, particularly with a view of replacing the mundell - flemingdornbusch open economy model, previously the workhorse of virtually all policy analysis in international economics both inside and outside central banks. this ground - breaking effort, reflected in the work written jointly with maurice obstfeld entitled “ foundations of international macroeconomics ”, gave birth to a new field in “ new open economy macroeconomics ” and spurred a vast and ever - growing literature. this new approach has allowed both researchers and policymakers to analyse substantive issues, such as current bis central bankers ’ speeches account and fiscal imbalances, and to provide a welfare - theoretic perspective on global macroeconomic policy. as the imf ’ s chief economist between 2001 and 2003, professor rogoff launched the development of a large - scale version of his model with maurice obstfeld, the global economy model ( gem ), one of the first fully - fledged dynamic stochastic general equilibrium ( dsge ) models to be used for policy analysis. more recently, he has offered us invaluable insights into financial crises. his 2009 bestselling book with carmen reinhart, this time is different, is a landmark work. this tour - deforce, drawing on data for 70 countries over 800 years, provides evidence that financial crises are far more universal, and that there are far more quantitative similarities in their aftermath, than previously believed. the “ this - time - is - different - syndrome ” is a powerful reminder of the dangers of complacency. one key observation is that financial crises are followed by unusually prolonged recessions in economic activity. another valuable insight is that the fiscal and financial dimensions are closely interconnected. fiscal imbalances can undermine the financial sector ; financial sector imbalances can weigh down on the credibility of the sovereign ; both can spillover into the real sector, and vice versa.