for local businesses to take advantage of both the knowledge created and the availability of research facilities at local colleges and universities. partnerships between private industry and higher - education institutions are an important ingredient in this regard. going forward, i believe these partnerships will become more important than ever – particularly for places like buffalo that continue to undergo economic restructuring. fortunately, the region has a strong higher education sector in place. conclusion to sum up, the incoming data on the u. s. economy has been a bit more upbeat of late, suggesting that the recovery may be getting better established. but, while these developments are certainly encouraging, it is far too soon to conclude that we are out of the woods in terms of generating a strong, sustainable recovery. on the inflation front, the year - over - year rate of consumer price inflation has slowed in recent months, and despite the recent rise of gasoline prices, we expect inflation to moderate further in 2012. here in buffalo, the economic restructuring has positioned the region ’ s health and education sector as a potentially solid base for longer - term growth. thank you for your kind attention. i would be happy to take a few questions. bis central bankers ’ speeches

debentures shall be made by the government or by any agency or institution referred to in subsection ( 1 ) of section 106, whether in pursuance of authority conferred by any written law or otherwise, unless the advice of the monetary board has first been obtained upon the monetary implication of the proposed loan or issue. ” bis central bankers ’ speeches the exter report elaborates the thinking behind these sections : “ in a small country like ceylon, it is clearly advantageous to place the responsibility for co - ordinating the activities of all government credit institutions in the monetary board of the central bank. the board determines monetary and credit policy in general, and should have some means of ensuring that the policies of other credit institutions conform. ” he further clarifies : “ the board should be able to co - ordinate both the borrowing and the lending and investment operations of such institutions. with respect to borrowing, co - ordination is necessary in order to prevent separate government agencies from competing with each other and ‘ spoiling ’ the market, especially in the early stages of its development, and to make possible the formulation of a properly diversified pattern of interest rates and maturities for the entire government borrowing program. ” those sections of the mla that i referred to, and the relevant annotations in exter ’ s report, strongly suggest that the central bank should play a dynamic role in the formulation of fiscal policy, particularly in relation to a significant part of fiscal policy ’ s sphere of influence, namely that of borrowing and lending. in that context, it may be safely argued that, whilst the overwhelming responsibility for monetary policy has to be assumed by the central bank, a sizeable part of the responsibility in relation to fiscal policy is also cast upon the central bank. fourth : exter explains the unique position of the governor, and the need for the governor to be independent. this position is assured by the fact that the governor is appointed for a 6 year term and cannot be removed from office, unless he has done any act, which in the opinion of the governor general, ( now, the president ), is of a fraudulent or illegal character, or is against the interest of the central bank. fifth : exter discusses the limitations of the central bank : once again, let me quote : “ a central bank influences the economic life of a nation principally by monetary action. while such action can be tremendously effective under certain conditions, its limitations should be frankly recognized. thus, through its control