floating, which would lead to a very significant structural change. as for raw materials, the issue of the optimal management of rare natural resources has long been ongoing. some of them are not renewable, and we must therefore ensure the long - term preservation of our common heritage, in the best possible conditions. the demand for agricultural products will increase, owing to the rising standards of living in the major emerging market countries. it is important that we do everything we can to ensure the supply of these products increases substantially, both in the medium and long term. how much importance should be attached to speculation causing the prices of basic foodstuffs to rise? we mustn ’ t confuse very short - term speculation, which probably doesn ’ t have a significant and lasting impact on the medium - term price level, with the phenomenon of change in the portfolio allocations of global fund managers who for a long time didn ’ t invest in raw materials at all. now that raw materials are gradually playing a more important role in asset allocation, this could generate a lasting upward pressure on prices. it is a phenomenon that we must watch very closely. a potential favourite for your successor, the president of the bundesbank axel weber, has taken himself out of the running, citing a lack political support from certain governments. does this mean that the european debate on the subject is still far from being settled? this is a decision that axel weber has taken for personal reasons. i respect that decision. the appointment of the president of the ecb is a very important decision, which is in the hands of the heads of state and government. would you be prepared to stay on if necessary? the question does not arise! i have a clear mandate, with a time limit. bis central bankers ’ speeches

globalization, and the collapse of this system offers us a cautionary tale. furthermore, in a world where public and private actors taking part in economic activity are becoming ever more diverse, it would be quite a challenge to agree on what is desirable globalization and what is not. if, in despair, unilateral action, such as trade bans, mandatory domestic incorporation, or forced repatriation, is taken, everybody would become worse off. is there a way out of this predicament? if the objective of global governance is to secure global financial stability, and if global financial stability is a public good, global governance can be analyzed as a microeconomic problem regarding public goods. there are well - known options to solving the problems posed by public goods. the most straightforward is to have the public sector provide the public goods. alternatively, rules could be established regarding the consumption of public goods. another option is to tax the consumption of public goods or subsidize the production thereof. there are still other options, such as changing the public character of the goods by increasing their exclusivity. not all may be applicable to international financial stability, and some may be more easily implemented than others. in view of the discussions during various international fora in which i have participated, i have a feeling that we are making it more difficult for ourselves by opting for the seemingly most obvious option – tasking the public sector with providing international financial stability. as tommaso observed, there is a limit to what individual nation states can provide as global public goods. a coherent set of public goods provided by a single global public entity would be desirable, but there is no workable way of introducing such an arrangement consistent with our democratic principles. international organizations are often criticized for deficits in democratic accountability. on the other hand, a democratically elected world government with the power to tax is unthinkable in the near future. the current situation in the euro area is an example of this intractable problem. we therefore should aim for a more practical approach, combining various options that are known for solving the public good problem. some public goods, such as effective supervision of globally important financial institutions, could be provided at the national level. supranational institutions could be asked to take on specific tasks, such as monitoring global financial developments and identifying macroprudential risks, without undermining democratic principles. private actors could be made to follow certain rules, such as the basel rules on