final remarks the chilean economy has recovered strongly from the 2009 recession, and the different variables are beginning to converge to their estimated equilibrium levels. output gaps are closed, unemployment is down, and trend inflation remains below the lower limit of the target ’ s tolerance range, but gradually approaching three percent. thus, the monetary policy rate should be around its neutral level, neither increasing nor reducing aggregate demand with respect to its trend. in the scenario we consider to be the most likely given present - day and expected conditions, the larger part of the adjustment to the mpr we began in june 2010, and which has amounted to an increase of 475 basis points, has already been completed. in this scenario, we use as a working assumption that the mpr will be within the range of values that have historically been considered neutral. however, we must keep in mind that the behavior of both the domestic and the external economy in the past several years may have changed those ranges, introducing a high degree of uncertainty about the true short - term level of the neutral mpr. all in all, exactly how far and when we will take the mpr in the current cycle is something the board will be analyzing with incoming information on the evolution of the chilean economy and the international scenario. it is worth pausing for a few moments to take a look at the evolution of the world economy. in our most likely scenario, we estimate that the world will continue to add momentum to chile ’ s gdp growth, although gradually declining in the coming quarters. however, as i already mentioned, there are important risks. developed economies may enter a stage where output fails to pick up and new economic policy efforts are needed to boost growth. the big problem they are facing is the exhaustion of their traditional policy tools. fiscal policy has no room left for expansion due to the size of their debt, and monetary policy is already in the lowest possible interest rates. the emerging world – chile included – faces a different challenge : how to prevent our economies from expanding above trend. luckily, as an outcome of our own actions, we have the policy tools to deal with this scenario. at the same time, in case of a further deterioration of the global economy, we have a sufficiently flexible monetary policy to mitigate its effects on our domestic economy and preserve the necessary equilibriums for sustainable improvement in the welfare of the population. our task consists, then, in properly managing the policies and safeguard said equilibriums. therefore, and taking into account the risk balance we face,

such as these make me wonder whether it might collectively be possible to come to a compromise in which more trading is done directly on the public market, if at the same time the public market rules were adjusted to emphasize greater liquidity provision, and particularly more stable liquidity provision, over speed. perhaps public - private forums such as this conference can help in achieving that type of cooperative approach. i look forward to hearing views on these ideas tomorrow. bis central bankers ’ speeches treasury repo markets have also been undergoing structural changes. this is a good time to look at potential changes to the clearance and settlement infrastructure in these markets, as we will discuss tomorrow afternoon. we should take this opportunity to ask whether current market structures are well - suited to the new environment, or whether we should be aiming for a substantially different approach in the longer run. there is a tight link between funding liquidity in repo markets and market liquidity in cash and futures markets, so a healthy, liquid repo market is essential to the overall health of the market. however, regulatory changes have made repo activity more expensive. 4 there are currently a number of private proposals to expand the use of central clearing for repo markets that could help to reduce those costs. since the crisis, reforms have supported greater use of clearing for a wide range of products, and i believe that greater clearing in treasury repo markets could be beneficial. the conference will conclude tomorrow with a discussion of regulatory requirements in treasury markets. many point to post - crisis regulation as a key factor driving any recent decline in liquidity. although regulation seems to have had little to do with the events of october 15, i would agree that it is one factor driving recent changes in market making. the same regulations have also greatly strengthened the major banks and made another financial crisis far less likely. in my view, we should be prepared to accept some increase in the cost of market making in order to improve our overall financial stability. that said, these regulations are new, and we should be willing to learn from experience. regulatory requirements for treasury markets may need to change over time to reflect a rapidly evolving market environment. markets will adapt to new regulation and other developments. we all have a responsibility to make sure that market and regulatory incentives appropriately encourage an evolution that will enhance market liquidity and functioning. i ’ ve been eagerly looking forward to this conference, in the belief that our discussions here can do just that. regulatory efforts have also made tri - party repo infrastructure considerably