but not arbitrarily ) by including some elements of direct inflation targeting. the multitude of additional information could be compressed in this sense into a formal inflation forecast. personalities the ecb statute does not seek to establish a currency standard excluding all and any room for discretionary manoeuvre. consequently, a role will be played by the personalities responsible for formulating and implementing monetary policy. that applies especially to an institution which is completely new. public controversies about the filling of top posts damage credibility. monetary union will not be additionally bolstered by a political union. the leading personalities will therefore be associated almost inevitably with their respective national states, yet in the end they are to execute a common policy, namely a single european monetary policy, and to withstand political pressure. the same applies, by the way, to the governors of the national central banks. misgivings are therefore called for if, for example, there are intentions to introduce accountability towards the national parliament. iv conclusion the maastricht treaty has largely laid the foundations for a stability - oriented monetary policy as far as the institutional arrangements are concerned. those foundations need to be complemented by an appropriate strategy and a convincing decision regarding the choice of the leading personalities. the launching of a new central bank and a new currency is accompanied by uncertainty. the associated risk premium in the interest rate can be kept down by choosing an appropriate strategy and suitable top executives. the financial markets will keep a critical eye on the ecb right from the start. the initial monetary policy course thus takes on crucial importance. some people are therefore already advising the ecb to pursue a particularly restrictive course right from the outset so as to nip any mistrust in the bud, as it were. such an uncompromising approach would inevitably give rise to tensions within the council. it is also hard to imagine that the ecb would meet with general approval for such a course among the people of europe, given the high level of unemployment. at the moment we do not even know whether there is a stable european consensus on the acceptable or optimal rate of inflation. the trend towards the convergence of inflation rates at a low level is a good omen. in a monetary union without a flanking political union, we shall simply have to wait and see whether this convergence of preferences will prove to be a lasting phenomenon. the consensus regarding the preference for stable money - the common “ stability culture ” - is all the more important as monetary union will have to survive for the fore

norman t l chan : remarks at the hong kong academy of finance inauguration ceremony and fellowship conferment welcome remarks by mr norman t l chan, chief executive of the hong kong monetary authority, at the hong kong academy of finance inauguration ceremony cum fellowship conferment, hong kong, 26 june 2019. * * * the honourable paul chan, distinguished guests, ladies and gentlemen, 1. a very warm welcome to all of you for joining us today to witness the inauguration ceremony cum fellowship conferment of the hong kong academy of finance ( aof ). 2. i strongly believe that the most crucial factor that differentiates an international financial centre ( ifc ) from the other aspiring financial centres is its superior “ soft infrastructure ” or “ soft power ”. i am sure you will agree with me that the quality and professionalism of the people in the financial services industry are the building blocks for the “ soft infrastructure ” that determines the competitiveness of an ifc. the mission of the academy is to serve as a centre of excellence for developing financial leadership as well as a repository of knowledge in monetary and financial research, including applied research. 3. the aof will develop and run a leadership development programme to nurture financial leaders in hong kong. the academy will invite senior management and promising talents from financial institutions, regulators, professional firms and academia in the field of finance to join as members. aof members will be invited to participate in the leadership development programme through which they can interact with the academy ’ s international advisers, fellows and other top financial leaders through seminars, workshops and small group discussions. although the academy does not offer technical or professional training, which is well served by many tertiary institutions and professional bodies such as the hong kong institute of bankers, the hong kong securities and investment institute, the treasury markets association, we will collaborate closely with these institutions as our partners to achieve the maximum synergy in accomplishing our common goal of enhancing the soft power of hong kong. 4. on the research front, the hong kong institute for monetary research ( hkimr ), which was set up 20 years ago to undertake monetary and economic research, has become a subsidiary of the aof and will expand its ambit to cover applied finance research and thought leadership. the hkimr will continue to have its own board of directors and, in addition to the existing council of advisers for monetary research, a new council of advisers for applied research has been set up to oversee the applied research work of aof.