a long - term horizon. there are of course a multitude of tasks that we must push ahead with to promote sustainable and balanced growth. but i would like to focus here on employment, since that is today ’ s theme. i believe that the 2008 global financial crisis gave us an opportunity to rethink the importance of employment. until the crisis, the role of employment had not moved beyond supporting the demand for labor needed for economic growth. given the persistence of low growth since the crisis, however, it is now widely recognized that employment should play an active role in stimulating growth. and this seems to reflect an expectation that both the effective demand shortage on the aggregate demand side, and bis central bankers ’ speeches the stagnation in production capacity on the aggregate supply side, can be simultaneously addressed through employment policy. and so let me touch briefly now on some policy operations necessary to ensure that employment can drivegrowth. first, we need to boost aggregate demand by actively pushing policies to expand employment, the source of household income. to this end, we should strive to maintain the macroeconomy in a stable manner, so as to create conditions favorable to employment. and from the microeconomic perspective, we should also implement measures to create new jobs, by for example encouraging more people to start their own businesses, and strengthening the competitiveness of the service sector with its huge job creation potential. next, i would like to emphasize the need for efforts to ensure that the increase in income stemming from expanded employment also leads to an increase in consumption. to this end, it is necessary to alleviate people ’ s uncertainties about the future, by reducing the imbalances in wage and employment conditions among workers, and strengthening our social safety nets. what i want to point out lastly is the greatimportance of nurturing innovative and creative human resources. many people anticipate that, after the ongoing digital innovation and the so - called “ fourth industrial revolution, ” the demand for labor will decrease and employment will shrink. but if more and more people become able to assimilate and utilize various digital technologies, such as artificial intelligence and big data, then i think such technological advancements will insteadpositively affect employment and growth. a bigger pool of creative talent will enable the creation of new industries and new markets, and as a result new jobs. this will in turn boost effective demand, and bring about a virtuous cycle of growth and employment. ladies and gentlemen! so far i have discussed how

of the seamless conduct of surveillance and policy coordination. i would now like to run through the challenges that particularly strike me. iii. challenges of surveillance and coordination let me first point out the four factors that complicate the exercise of surveillance. bis central bankers ’ speeches 1. blurred designation of accountability due to the complexity of financial instruments first of all, the recent financial crisis is set apart from previous crises in the sense that it is difficult to put your finger on the exact locus of responsibility for those specific elements that gave rise to it. this very fact itself represents a substantial hurdle for surveillance. for example, more than one thousand people were held criminally liable when many us savings and loans associations folded in the 1980 ’ s. on the other hand, with the possible exception of a handful of cases such as that of bernie madoff, no criminal prosecutions were undertaken against the staff and management of financial institutions during the recent crisis. today, it is much more difficult to pinpoint those players who actually give rise to risk because the “ originate and distribute ” model passes on and spreads out heavy risks into a myriad of lesser risks. “ cdos ( collateralized debt obligations ) ”, frequently cited of the major causes of the sub - prime crisis, are a case in point. when cdos go through “ originate and distribute ” process numerous times, the riskcreating entity cannot be clearly identified. for this reason, regulatory authorities were unable to fully comprehend the trade mechanism and the relevant data of cdos when lehman went bankrupt in september 2008. the purpose of surveillance is “ to detect problems ahead of time and correct faulty elements ”. nonetheless, if the structures and transactional processes of financial instruments are too complex as with cdos, in which it is too difficult to identify the problematic entity, surveillance becomes a path fraught with difficulties. 2. financial innovation incentives secondly, the incentives for innovation by financial market players themselves turn into barriers to effective surveillance. the market reacts spontaneously and swiftly to new regulations by innovating techniques and products to circumvent them. innovation on the part of market participants can be expressed in other words as “ the build - up of a new risk or imbalance that is not immediately apparent to the relevant authorities. ” during the period of transition to basel iii, banks will attempt to minimize the burden imposed by the new regulations. this change in the regulatory environment will create new sideeffects with the potential for triggering the eruption of new and unantici