downturns. that development, in turn, could make it more difficult during downturns for monetary policy to support spending and employment and to keep inflation from falling too far below the central bank ’ s objective — 2 percent in the case of the federal reserve. 4 another key development in recent decades is that price inflation appears less responsive to resource slack. that is, the short - run price phillips curve — if not the wage phillips curve — appears to have flattened, implying a change in the dynamic relationship between inflation and employment. 5 a flatter phillips curve permits the federal reserve to support employment more aggressively during downturns — as was the case during and after the great recession — because a sustained inflation breakout is less likely when the phillips curve is flatter. 6 however, a flatter phillips curve also increases the cost, in terms of lost economic output, of reversing unwelcome increases in longer - run inflation for evidence of a fall in neutral rates of interest in the united states and abroad, see, among several contributions, king and low ( 2014 ) ; holston, laubach, and williams ( 2017 ) ; rachel and smith ( 2017 ) ; and brand, bielecki, and penalver ( 2018 ). for assessments of the risks that u. s. monetary policy will be constrained by the elb and its implications for economic activity and inflation, see kiley and roberts ( 2017 ), erceg and others ( 2018 ), swanson ( 2018 ), and chung and others ( 2019 ). for evidence of a flattening of the slope of the phillips curve in the united states and abroad, see, among others, simon, matheson, and sandri ( 2013 ) ; blanchard, cerutti, and summers ( 2015 ) ; and bank for international settlements ( 2017 ). one potential contributor to the flattening of the phillips curve is a change in the conduct of monetary policy since the 1980s toward greater stabilization of inflation and economic activity ; for evidence of such a change, see clarida, gali, and gertler ( 2000 ) ; boivin and giannoni ( 2006 ) ; and boivin, kiley, and mishkin ( 2010 ). as discussed in roberts ( 2006 ) and bullard ( 2018 ), greater stabilization on the part of a central bank can lead to the estimation of flatter phillips curves in reduced - form regressions. similarly, the adoption of an explicit inflation

fast moving market. one of the basic tenets for the treasury unit in a bank is the strict segregation of duties and location between the front, middle and back office, the latter controlling confirmation and settlement transactions. you can trust neither your subordinates nor your superiors. errors can be expensive. correct your errors. if you do not do so, your errors become fatal mistakes in treasury management. the events of the past two years demonstrate how quickly a corporation ’ s reputation can be tainted by accusations of inappropriate activities or lack of attention to regulations. success in banking still is heavily dependent on winning and keeping the trust of customers, employees, and the public at large. when corporate reputations are tainted, it does take time to rebuild customer and community relationships. last year i met with one of the foreign exchange dealers at a reception. i told him that he was taking too much time to become a market maker in our money and foreign exchange markets. pat came the reply from your friend that rome was not built in a day. it took time to build rome. i listened and did not utter any single word. this is an appropriate time for me to respond to that statement. yes, it did take time to build rome because they did not have the technology. you have the technology. go ahead and develop skills in market making. it will serve all of us to have good market makers in our financial system. i am aware that the experts from the republic of south africa are competent persons and i trust they will do an excellent job. i wish all my good friends from the financial markets association of mauritius here the very best of success in their endeavours. thank you