in terms of growth is not enough to make them widely acceptable to the public. we also need to take into account the inclusiveness of economic policies. as we all know, there is an increasing perception that growth in the past has not been sufficiently inclusive, and was not always associated with rising living standards for everyone. this has fuelled the belief that some have been “ left behind ” by the spread of market forces. in this context, the case for structural reforms needs to go beyond their efficiency benefits. we need to show that reforms can contribute to both efficiency and equity. one way this can be achieved is by focusing more on reforms with positive distributional effects. tackling rent - seeking in some product markets tends to benefit those at the lower end of the income scale, since such reforms lead to lower prices and increased consumption choices, and therefore improve the welfare and purchasing power of poorer people in particular. 14 addressing tax avoidance and evasion would also help reduce inequality. indeed, the payoff of efforts in this area can be significant. in 2015, eu countries lost around 12 % of total expected revenues in value - added tax, partly because of tax evasion and inadequate tax collection systems. 15 still, some reforms will always have negative distributional effects, at least in the short term. 16 but in these cases we can do more to reduce inequality by ensuring that flexibility is combined with security. inclusive labour markets are ones with well - functioning active labour market policies that allow people to reskill, and proactive macroeconomic policies that shorten job transitions. before the crisis, several countries introduced labour market reforms to increase flexibility, but did little to make their labour markets more secure. this ended up disproportionately penalising young people, who had weak job protections and meagre support during unemployment. 3 / 5 bis central bankers'speeches as i said in a recent speech in ireland, young people do not want to live on subsidies. they want to work and expand their lifetime opportunities. 17 so we should never think that simply compensating the “ losers ” of reforms is enough. public policies have to be designed to help people back into work, and into jobs where they can develop and refine their skills. given the ongoing polarisation of skills in labour markets, this points to the crucial importance of strong education and training systems. job polarisation is not just putting increasing pressure on workers with mid - level skills, but also complicating the possibilities for un

management issues have lost their centrality, important as they may remain. the tension caused by substantial deviation from the desired outcome, albeit on account of a concatenation of external shocks of unprecedented magnitude, poses an on - going challenge – with regard to time - consistent policy responses and with respect to communication. but these are matters for discussion and debate at another time. thank you for your attention. references : 1. asso pf, kahn ga and leeson r ( december 2007 ) “ the taylor rule and the transformation of monetary policy ”, federal reserve bank of kansas city ; research working papers. 2. gidlow, r ( 1995 ) “ south african reserve bank monetary policies under dr t. w. de jongh 1967 - 1980 ”, pretoria, south african reserve bank. 3. king, m ( 2000 ) speech to the joint luncheon of the american economic association and the american finance association, boston marriot hotel, january. 4. mminele d ( 2007 ) “ the accumulation of reserves by emerging markets and the case of south africa ”, jp morgan asset management central bank reserve management seminar, johannesburg, november. 5. south african reserve bank, quarterly bulletin, various issues ; 1995 - 2008. 6. stals, c. l. ( 1996 ) “ exchange control : how critical is it? ” address by dr chris stals, governor of the south african reserve bank, at the europe - south africa business and finance forum, cannes ; 17 june. ( 1997 ) “ exchange controls and monetary policy. ” address by dr chris stals, governor of the south african reserve bank, at a roundtable discussion arranged by economist conferences, johannesburg. ( 1999 ) remarks by dr chris stals, retiring governor at a gala dinner of the south african reserve bank ; 8 august. 7. volcker, p ( 1990 ) the triumph of central banking ; per jacobsson lecture, per jacobsson foundation, washington dc.