our affairs so that inflation is hardly a factor in our long - term plans. the formula is simple enough although very challenging to put into practice. first, we need to stabilise public finances. we need to stop the process that demands that we keep borrowing just to keep servicing past borrowing. we need to leave people with as much money in their pockets as possible and cease paying more employees than necessary to produce fewer and fewer goods and services. that process has begun in the public sector and an encouraging degree of progress was made in 2010. the jamaica voluntary debt exchange ( jdx ) provided a jump start by reducing annual debt serving costs by over $ 40 billion and has relieved cash flow requirements by extending the maturity of government securities. the grace period that this has provided is allowing time for the implementation of a series of reforms – from divestment, expenditure management and tax administration to overall resizing of government – that will see the government ’ s borrowing requirement eliminated in three years. it is a strong commitment to stakeholders, local and foreign, who are monitoring progress carefully. the fiscal consolidation and financial discipline represented by these reforms is a key component of a stable low - inflation environment. second, the central bank has a key role to play. many low - inflation countries have modified their governance arrangements such that the central bank takes “ independent ”, or non – political, responsibility for achieving the inflation target that the country sees as desirable. the bank is then left to make the necessary periodic adjustments to its monetary policies so as to achieve this objective and reports to the country through parliament at regular intervals. it has worked well elsewhere and is being advocated by strong voices in the local private sector. we at the bank endorse this direction and have already begun to rearrange our internal operations to meet this new expectation. by march 2011, we expect the 12 - month inflation rate to fall to about 8 per cent, well within the target range announced for the fiscal year. we at the bank of jamaica will do what is required of us to see that rate fall further and remain at a stable single - digit rate for the foreseeable future. but much depends on what the public views as an acceptable rate of inflation. jamaica has experienced an average annual rate of inflation of about 15 % over the past 50 years. our main trading partner, the usa, has averaged about 4 % over the same period. we need, as consumers, parents, financial planners and advisors to make our voices heard and help to

brian wynter : rekindle the passion remarks by mr brian wynter, governor of the bank of jamaica, at the blast off 2011 seminar “ rekindle the passion ”, hosted by the jamaica association of insurance and financial advisors ( jaifa ), kingston, 11 january 2011. * * * ladies and gentlemen, thank you for inviting me to join you in your “ blast off ” and for giving me an opportunity to share with you my view of the economic outlook for 2011. had i been offered this opportunity last year, i would have sketched a picture of an economy that was struggling to come to terms with the impact of a global recession. output and employment were declining and were expected to fall further. even as incomes were falling, inflation was being driven by new tax measures as the government tried desperately to keep up with the heavy burden of debt payments. the only bright spot that i would have relied on to motivate you would have been the potential benefits of a radical debt initiative that was still in the design stage and the likelihood of strong international support if jamaica could commit to a new path of fiscal and debt sustainability. i ’ m glad to be able to join you at the start of 2011 because this time the outlook is different. i hope that you will fully understand what i mean in a few minutes. as advisors all, you would know that a large part of the value that you bring to your clients consists of an informed view of the kind of changes that we can expect in our economic environment – what will happen to inflation, incomes, the exchange rate, interest rates, taxation and so on. all financial plans depend on these inputs. in designing or choosing financial products for your clients, you seek to protect them from some of the risks to which they are exposed and, where applicable, you find a way for them to share in the proceeds of activities that are profitable and expanding. i claim, as a kind of financial advisor myself, that inflation is the single most important variable affecting your future, the value of your products, the perceived value of your services and your own financial plans. inflation is the continuous, inexorable and sometimes rapid increase in the prices of the things we need to enjoy a decent life or even merely to survive day by day. it eats away at our savings and makes nonsense of long - term financial plans. and it has a direct link to those other variables that planners contend with such as growth, interest rates and the exchange rate