improvements in financial markets. in combination with low interest rates, the easing of financial stress has see raskin, " aspects of inequality in the recent business cycle, " in note 1. for a discussion and list of references regarding the effects of recent monetary policy actions, see ben s. bernanke ( 2012 ), " the economic recovery and economic policy, " speech delivered at the economic club of new york, new york, november 20. bis central bankers ’ speeches allowed some homeowners to refinance their mortgages to lower their monthly payments, and some types of loans, such as those for purchasing a new or used car, have become available to more people. that said, we clearly still have a long way to go in assuring that americans have access to affordable credit. as i noted, an especially large number of people are unable to obtain mortgage credit, and credit card borrowing is also tight. taken together, the incoming data and my own analysis of recent developments in fiscal policy suggest that the recovery will continue at a moderate pace, and the unemployment rate will fall gradually. according to the summary of economic projections that was released by federal reserve board members and reserve bank presidents after the march fomc meeting, my colleagues and i expected real gdp growth to step up moderately this year, rising roughly 2 - 1 / 2 percent after having risen 1 - 3 / 4 percent in 2012. in the projection, participants also expected the unemployment rate to be in the range of 7. 3 to 7. 5 percent by the end of the year. looking a bit further ahead, fomc participants largely expected the unemployment rate to continue receding, but it was expected to remain above its long - run sustainable level for several years. meanwhile, inflation was expected to remain close to or a little below the committee's objective of 2 percent, consistent with ongoing slack in the labor and product markets and well - anchored inflation expectations. monetary policy developments in light of this outlook and the risks around the outlook, it has been appropriate for the federal reserve to continue to pursue a highly accommodative monetary policy. as you all know, during the financial crisis and at the onset of the recession, the federal reserve took strong easing measures, cutting the target for the federal funds rate – the traditional tool of monetary policy – to nearly zero by the end of 2008. during the recovery, we have provided additional accommodation through two non - traditional policy tools aimed at putting downward pressure on longer - term

rasheed mohammed al maraj : vigorous economic growth in bahrain speech by his excellency rasheed mohammed al maraj, governor of the central bank of bahrain, at the strategic forum on the bilateral trade and investment opportunities in the banking and finance, london, 10 january 2008. * * * in 2008, in a time of economic boom, it seems almost a fruitless exercise to embark on a discussion about the benefits of economic liberalization in the gulf region. why would we want to talk about the continuing need for economic liberalization when economic growth in recent years has exceeded all expectations? the large number of public and private investment projects currently underway have collectively achieved unprecedented record levels of growth, furthering the region ’ s attractiveness to international investors. some might even say that we don ’ t need any more liberalization. we are doing quite well enough thanks to oil. frankly, i would have to disagree. even in boom times, the key challenge to gcc governments is to maintain the momentum of economic activities thereby creating additional job opportunities. this means encouraging economic diversity, and increasing the private sector ’ s role in the economy. and hopefully, with increased diversity and a larger private sector, there will be less dependence on oil income as a catalyst for growth in the future. the way to achieve a more efficient and competitive private sector is not by protectionism but to increase competition and open up the domestic economies further. let me explain this perspective first by looking at the key factors that have contributed to the vigorous economic growth we are witnessing at the moment. the key growth factors are : 1. a large increase in oil revenues, which have permitted high government spending. 2. more flexible economic policies aimed at reducing red tape, and facilitating greater participation by the private sector ; including trade liberalization and allowing foreign ownership of local companies. 3. a redefinition of the government ’ s role from being purely an owner of nationalized industries and job provider into a more regulatory and supervisory capacity ; allowing more room for the private sector to function effectively and efficiently. 4. the emergence of a highly qualified professional domestic private sector that is capable of engaging in entrepreneurial activities and adding value locally rather than engaging in the traditional role as merchant where frankly little if any economic value was added locally. as an example of economic restructuring taking place in the region, i would like to review briefly bahrain ’ s experience in economic reform and liberalization over the last 30 years and the benefits we have derived. a key objective