11 per cent down ). unemployment we think will continue to rise somewhat during 2010, though a reversal of net migration flows will serve to limit this. the current recession has resulted in a significant deterioration in the labour market position of the young in the worst affected countries. in germany, the unemployment rate has hardly moved during the recession, whether at the aggregate level or among the under - 25s. in the usa, which has seen its aggregate unemployment rate double from about 5 to about 10 per cent, youth unemployment went up only slightly faster from 12 to 19 per cent. but in ireland youth unemployment has jumped from less than 10 per cent to over 31 per cent in the past two years – much faster than the aggregate rate which has gone from 4. 7 to 13. 3 per cent. ( spain has had an even worse experience ). this has to be turned around : and that will require determination. some lessons can be learnt from past experience here. this is the fourth major recession i have lived through, though i was only in primary school for the dip of the mid - 1950s which prompted the sea - change in economic policy and gave us the outward - looking globalised society we live in today. globalisation has allowed us to converge in average living standards to the european frontier, but globalisation also does seem to be associated with heightened volatility, and the depth of the current downturn reflects the over - heated expansion that preceded it, which in turn was fuelled by credit sucked - in to ireland all too readily from the globalised financial system. in short, we did not manage our engagement with the global economy in a manner consistent with stable growth. but if globalised economies can fall far, their recovery can also be vigorous. the spectacular recovery of employment and fall in unemployment after the deep recession of the mid - 1980s has rightly been attributed among other things to the wage restraint that characterized the social partnership from 1987 on. wage restraint is all the more important now, when price levels have been falling, with the result that nominal wage rates that might have been viable a couple of years ago, no longer make commercial sense. the problem is even worse because of the unsustainable upward drift in wages that occurred in the mid 2000s. i am sorry to bang on about this, but central banks aim at overall price stability to help ensure that wage and price planning can be carried out in a manner that ensures stable growth. when, as in ireland today, inflation undershoots

that facilitate faster and cheaper payments. 1 / 6 bis - central bankers'speeches the scale of the challenge faced by regulators, law enforcement and industry in an environment of almost continuous technological advancement is immense. the interconnected nature of the global financial system and the proliferation of cross - border crime has added a layer of complexity and opaqueness to compound the challenges already faced. recent scandals and exposa©s have revealed many risks. what we have seen is that tackling criminality across borders and stemming flows of money is complex and very difficult. the incentives for bad actors to circumvent obstacles and controls is too great for any single country or authority to be able to combat alone. the risks of financial crime and the abuse of the financial system is going to continue to rise in the coming years. digitalisation, artificial intelligence and further moves to a world online for the next generation means that traditional views and methods of preventing financial crime are obsolete. we need smarter, faster and more agile ways to combat financial crime in the system. however, before concluding on this point, it is not all doom and gloom. the same technological advances will also present more opportunities for transparency, deterrence, detection and disruption. the critical point being that it means we must collaborate and share, follow the risk and not get bogged down in process, and be laser focused on outcomes, not just on outputs. europe's response to the challenges turning to where we are now. the genesis of the new eu aml framework was an acknowledgment that a more collective and coordinated approach is required across the eu member states to tackle these challenges. moving to a single rulebook and setting up a central aml authority was seen as critical to improving aml effectiveness across the union. a key concern has been fragmentation in approaches by different national authorities and not identifying and mitigating risks with a broader lens, in a more coordinated way across europe. the creation of amla is a significant step in the right direction to confront the challenges we face, today and tomorrow. it presents a unique opportunity to grasp the nettle of regulatory fragmentation and eliminate the weak points in the current european aml framework. however, we should not be complacent in assuming that amla's success in combatting money laundering is guaranteed. setting up amla for success most people do not think about designing regulation and supervisory architecture. why would they? it is only something that catches people's attention when something goes wrong