bis - central bankers'speeches of course, instability has arisen in other areas that were missing from the original design of the euro area, most painfully during the sovereign debt crisis. but where gaps have appeared, they have been filled, most importantly through the creation of european banking supervision. second, the euro has increased our sovereignty, allowing us to be the master of our own economic destiny and to set the monetary policy that europe needs for stable prices and sustained growth. thanks to our single monetary policy, the ecb has been able to respond quickly and decisively to every kind of shock we have faced. and we have done so even when other large jurisdictions were pulling in a different direction. this was perhaps most visible when the us federal reserve system began a tightening cycle in 2013 while the euro area was still recovering from the sovereign debt crisis. our policy independence allowed us to chart our own course and begin a recovery that lasted for 26 straight quarters. third, the euro has created solidarity within europe. it has provided a symbol of unity through incredibly testing times, and motivation to support each other through the darkest of hours. and for this reason, new countries continue to join. over the past quarter of a century, we have welcomed nine new countries to the euro area, bringing us from 11 to 20 – with the most recent, croatia, joining at the start of this year. we have now reached a position where people can separate institutions from policies – which in my view is the hallmark of success. they may like or dislike the policies of the ecb, but they mostly no longer question whether being part of the euro area is the right choice. while the share of people who support the euro hit a low of around 60 % during the sovereign debt crisis, that figure is now close to 80 %. 5 and the depth of this support has also been demonstrated at the ballot box whenever membership of the euro area has featured in national elections. looking forward but this success does not mean that our work is done. it means that we are now in a position to make the best choices for our monetary union – rather than about having a union at all. it is now time for the next chapter in the euro's story to be written. and that will depend on the actions that we, as europeans, undertake. for the ecb, our immediate and overriding priority is to bring inflation back down to our 2 % medium - term target in a timely manner. and we will do so. 3 /

mas worked long and hard behind the scenes, keeping our exchange rate strong, our banks safe, and the system sound. next, we thank our partners in government 10. mas could not have done it alone. if singapore government had run persistent budget deficits instead of chronic surpluses, outcome would have been very different. bis central bankers ’ speeches experience from around the world shows that biggest threat to monetary and financial stability is government that spends beyond its means. 11. a fellow central bank governor told me this story. he had gone to a country in africa to deliver a speech. this was a country ravaged by hyperinflation brought on by mounting fiscal deficits. his grateful hosts gave him a momento – a beautifully framed currency note denominated in ten million units of the local currency. ordinarily, he would decline such a gift, to save the trouble of having to declare it back home. but on this occasion, he asked for one more of the framed currency note and paid for it. on reaching home, he sent one of the framed currency notes to his colleague at the ministry of finance with a short note saying, “ please put this in a prominent part of your office as i have done. let it be a constant reminder to us both that if we do not do our jobs properly, this is what will happen to our country. ” 12. we at the mas thank our colleagues in the ministry of finance and the broader government. your fiscal rectitude has allowed us to concentrate on our mission of securing price stability. 13. mas is independent within the government, not of it. having a cabinet minister as the non - executive chairman of mas has insulated mas from political pressure. when mas was set up in 1971 and the then - minister for finance mr hon sui sen became its first chairman, the world bank was horrified. they said it was like asking the cat to look after the fish! the track record shows that the cat has been exceedingly well behaved. in last 40 years, government has consistently backed mas. never has the government pressured mas to : ease monetary policy ; or give a license to a bank that mas was not inclined to admit ; or refrain from taking action against a financial institution that did not behave. next, we thank our partners in the financial industry 14. managing risk is an exercise in partnership. mas will never know what all the risks are and where they are, as well as the institutions themselves. that is why the boards