valuable. thank you! in fact using the paye system would probably be the easiest way to implement such a scheme. moreover, if the government were actually to send out vouchers redeemable into cash it might well fall foul of the prohibition on monetary finance contained in the lisbon treaty. note that this only requires consumers to wish to smooth their spending over time, not that they internalise the implications for future taxes of more government borrowing ( so - called “ ricardian equivalence ” ). david miles ( 2011 ), “ mortgages and housing in the near and long term ”, http : / / www. bankofengland. co. uk / publications / speeches / 2011 / speech488. pdf bis central bankers ’ speeches the economic outlook cml mortgage industry conference london charlie bean, deputy governor monetary policy 03 november 2011 bis central bankers ’ speeches chart 1 : uk activity real gdp pmi surveys percentage increase on a quarter earlier 1. 2 cips services ouput cips manufacturing output index, 50 = no change 0. 9 0. 6 0. 3 - 0. 3 - 0. 6 2009 q3 2010 q1 2010 q3 2011 q1 2011 q3 jul 09 jan 10 jul 10 jan 11 jul 11 chart 2 : international activity composite pmi surveys real gdp percentage change on a quarter earlier us euro area 1. 2 index, 50 = no change us euro area 0. 8 0. 6 0. 4 0. 2 2009 q3 2010 q1 2010 q3 2011 q1 2011 q3 jul - 09 jan - 10 jul - 10 jan - 11 jul - 11 bis central bankers ’ speeches chart 3 : euro - area sovereign and banking risks cds - based bank default risk 10 - year government bond spreads basis points percentage points portugal ireland italy spain france uk austria, belgium, france, germany and netherlands greece, ireland, italy, portugal and spain uk us jan 10 jul 10 jan 11 jul 11 jan 10 jul 10 jan 11 jul 11 chart 4 : change in net exports after big sterling moves percentage point contribution to gdp 3. 0 1996 q1 ( 22 % ) ( inverted ) 1992 q2 ( - 14 % ) 2. 0 2007 q2 ( - 25 % ) 1. 0 0. 0 - 1. 0 - 6 - 4 - 2 10 12 14 16 quarters before / after start of exchange rate movement bis central bankers ’ speeches chart 5 : output losses after banking crises percent of pre - crisis trend ; mean difference from year t =

, in formulating and implementing their reform programme, iran has maintained a constructive engagement with the ifis. i am particularly pleased that the bank of england will be involved with an imf - world bank led technical assistance team on financial sector restructuring and supervisory and regulatory frameworks for banks in iran during the coming year. another key element of efforts to strengthen the international financial architecture has been the development and implementation of a range of international standards or codes of good practice. these codes are not meant to lay down strict or inflexible rules. they are designed, however, to promote best practices, while recognising that financial systems are likely to differ across countries and across time. the imf and the world bank, working together with the relevant standard - setting bodies, have been helping economies undertake assessments of their observance of some of these standards. iran is currently working towards the adoption of internationally accepted best practice standards in a number of areas. the central bank is developing a new bank accounting framework, which represents a move towards international accounting standards, while taking account of the special features of islamic finance. the authorities are also developing an action plan for implementing supervision reforms. these developments ought to be good news for prospective investors in iran. they also help illustrate that international best practice standards can be flexible enough to accommodate individual country circumstances. the move to a more market - oriented environment brings with it new challenges. for example, liberalising exchange controls and freeing the exchange rate to market forces brings risks as well as opportunities. a sequenced approach to capital account liberalisation helps mitigate these risks and that is the route iran has pursued. but that is not to say reform has stalled. since mid - 1999, the central bank has taken important steps to improve and simplify the foreign exchange market, including allowing the exchange rate to depreciate to market clearing levels. in march 2000, requirements to surrender non - oil export receipts to the central bank were abolished. the intention now is to introduce a direct, interbank foreign exchange market, and to eliminate an advance import deposit requirement by march 2001. these will be important further steps in increasing iran ’ s exposure to international competition which in turn can contribute to its productive efficiency. exchange rate unification and the partial liberalisation of trade and exchange controls will make greater demands on the effectiveness of monetary policy. for example, monetary expansion may arise from the phased reduction in banks ’ reserve requirements. it will be important for the central bank to develop effective monetary instruments to