the measurement of services consumption and the bank strongly supports these efforts. conclusion so in conclusion, there are significant changes in saving and spending patterns taking place in australia. the effects of these changes are probably most pronounced in the retail sector, with both increased saving and the switch towards services lessening growth in spending on goods. as a result, conditions are quite difficult for many retailers. the increased household saving is, however, a positive development from a national riskmanagement perspective. households are using some of their income growth to build up bigger financial buffers, and this should hold them in good stead in the uncertain world in which we live. these higher saving rates are likely to be quite persistent and they represent a return to more traditional patterns. while they partly reflect the ongoing adjustment to the earlier big run up in housing debt and housing prices, the evidence that i have talked about today suggests that there are also other factors at play. in particular, many households appear to have increased their saving in response to the decline in equity prices and an increase in uncertainty about the future. it is reasonable to expect that, at some point, the impact of these factors will begin to wane, although exactly when remains an open question. the reserve bank continues to monitor these trends very carefully, both at the national level and the micro level. over the period ahead, the way in which households respond to the global uncertainties and the continuing growth in their incomes will, no doubt, have an important bearing on developments in the australian economy. thank you. bis central bankers ’ speeches

rmb, in our settlement platform, if that is considered appropriate, could be as little as six months. if this strategy is successful, it is not difficult to envisage an increasing proportion of the balance sheet of the banking system denominated in foreign currencies, and the greater use of, say, the us dollar in both the equity and debt markets. i am not sure if this is a dimension covered in professor genberg's paper on endogenous dollarisation, but it is of particular relevance to hong kong. the third paper, to be presented by professor kumhof, deals with issues regarding price dynamics. professor kumhof's paper focuses on pricing policies and inflation inertia, at a time when we are experiencing deflation in hong kong : i am sure, however, that there are insights that we can derive from the paper and the discussion. research on price formation is high on the agenda of the hkimr and the hkma, and possibly in academic and other organisations active in economic research in hong kong. we have had deflation for some five years now and we are still debating the relative importance of cyclical and structural factors behind that deflation. there is also debate on whether measures could and should be taken to limit the damaging effects of deflation, notwithstanding the fact that hong kong is a highly externally oriented economy. views on price dynamics will contribute to these debates. as you know, the hkimr was established by the hkma. this reflects the importance we attach to thorough analysis of monetary and financial issues that hong kong is facing. developments in the local, regional and global economies provide many opportunities for hong kong, but also serve as potential sources of risks. it is therefore critical that we actively seek to understand these developments. to promote economic research of the highest quality, it is essential that the research activities of the hkimr are, and are seen to be, carried out freely, without interference from interested parties, including the hkma. it is therefore not desirable for the hkma to exercise control of the hkimr's day - to - day activities. but, of course, the professional quality and academic integrity of its activities need to be monitored and ensured. for this reason, a council of advisors, whose members are all distinguished economists working in and outside of hong kong, has been established. many of them are in fact here today. the role of the council is to ensure the quality of the hk