, what we have is a small number of broadly similar events that bear careful consideration. most of these considerations apply across markets, but they are particularly important here because of the crucial role that treasury securities play within the global financial system. in these remarks represent my own views, which do not necessarily represent those of the federal reserve board or the federal open market committee. references to the “ treasury markets ” refer to the interdealer cash and futures markets, unless otherwise specified. see department of the treasury, securities and exchange commission, and board of governors of the federal reserve system ( 1992 ), joint report on the government securities market ( pdf ) ( washington : government printing office, january ). the formation of an interagency working group, which in july 2015 published a joint staff report ( pdf ) on the events of october 15, 2014, was among the reforms noted in the 1992 report. the joint staff report on the u. s. treasury market on october 15, 2014 ( see note 2 ), includes measures of benchmark order book depth in the cash market that have declined since 2013 although they are comparable to levels in the early 2000s. measured trade sizes in both cash and futures markets are lower than levels in the early 2000s. between april and june of this year, interest rates on longer - dated german bunds rose sharply and amid considerable volatility on certain days, an event that observers coined the “ bund tantrum. ” on march 18, 2015, shortly after 4 p. m. edt and two hours after the release of the march fomc monetary policy statement, the euro rose over 3 percent against the dollar in a four - minute period and then reversed most of its gain over the next three minutes. bis central bankers ’ speeches addition to serving the financing needs of the u. s. government, treasury markets are important for the conduct of monetary policy. treasuries serve as high - quality liquid assets ( hqla ) for a wide range of financial institutions, including dealers in the treasury market, and as collateral in myriad transactions conducted bilaterally and through clearing houses and exchanges. treasury securities are a global reserve asset, and treasury markets are a key vehicle through which market participants manage their interest - rate risk. the integrity and continued liquidity of the treasury markets affect nearly everyone. treasury markets have undergone important changes over the years. the footprints of the major dealers, who have long played the role of market makers, are in several respects smaller than they

where am i? " and the farmer below says, " you are in a balloon. " and the man in the balloon says, " he must be an economist. he is telling me something right that is totally useless. " looking at how we use numbers is really the point, right? as they say, an accountant is someone who attempts to value the present, right? [ they ] look at the past. and, hopefully, an actuary is someone who attempts to value the future with all its uncertainties. and, clearly, that is very useful. for instance, in the bangko sentral ng pilipinas ( bsp ), we have economists, we have statisticians, econometricians, [ and ] accountants. they will look at data in a very 1 / 3 bis - central bankers'speeches different way. maybe the bsp needs some more actuaries. maybe we would do a better job if we had more actuaries, judging by the conversations we were having [ earlier ] at the table. i would like to tell you, for instance, that our human resource department informs me that there are more than 1, 100 positions in the bsp that have to do with data. of course, they use data differently. and maybe taking your view on many things, maybe we could learn a lot from you [ actuaries ]. of course, when you look at the bsp, it has three pillars. the most important pillar, i think, is price stability, which is, right now, very simple to explain : keeping inflation between 2. 0 – 4. 0 percent. for this year, we will clearly miss the target. and as we will explain, we will miss the inflation target because the high inflation is due to what we call " supply shocks, " which is not our accountability. in other words, if inflation is too high because we [ at the central bank ] created too much demand, we created too much credit, too much money, then blame it on us. but the [ current elevated ] inflation is due to shocks that have little to do with demand but have more to do with supply. clearly, central banks cannot control them. what we are saying is because it is a supply shock, we should take the necessary policies so that the inflation will return to 2. 0 – 4. 0 percent. and in our calculation - if we are right - by the second half of next year, inflation will already be