be promptly and regularly updated in the face of rapid financial innovation and broader structural change. of course, a trade - off exists between the stability and flexibility of the statistical framework. careful management of this trade - off is required in order to make monetary series meaningful for policy purposes in real time. in particular, it is apparent that the statistical framework needs to incorporate new instruments and business models resulting from financial innovation in a manner that maintains consistency between key aggregates ( such as m1, m3 or mfi loans ) and the policy - relevant underlying economic concepts ( such as liquidity, money or financing ). yet if such updating implied almost continuous changes to the definition of key aggregates, a consistent analysis of the data over time would be impossible. of course, i could go on and on : statisticians and reporting agents know all too well that economists and policy makers ’ data requirements are, in principle, inexhaustible. the merits and costs procedure adopted by the governing council to assess new statistical regulations reflects the need to cap this insatiable demand. today i will limit myself to nine requirements, and thereby come to my final point. in designing and constructing monetary and financial statistics for monetary policy purposes, it is crucial that close cooperation and active dialogue is maintained among reporting agents, statisticians at the ecb and the national central banks, users of the statistics and policy makers. this is a point i will take up again in my conclusion. before coming to that, please allow me to make a number of remarks about the role of monetary analysis in the current period of financial turmoil, drawing on the general requirements i have just listed to identify a number of specific implications for the construction of the monetary statistics that have arisen in this context. preliminary lessons from the ongoing financial turmoil since the emergence of financial tensions in early august 2007, the ecb ’ s monetary analysis has proved a crucial bulwark for the conduct of monetary policy in the euro area. in particular, the monetary analysis has helped to maintain the necessarily medium - term orientation of monetary policy, at a time when the power of the short - term forces at play threatened to overwhelm it. moreover, the monetary analysis has served to maintain a focus on nominal developments – that is, the inflation outlook at longer horizons – over which central banks can exert control and for which they ultimately need to take responsibility. the monetary analysis has thus helped the ecb to maintain the orientation of monetary policy towards its primary objective.

with the findings by chetty, there exists a large literature that has established the importance of high - quality education as a key determinant of economic mobility. while there are differences of opinions on the most relevant measures of school quality, there is ample evidence that children who attend better schools on average end up with better outcomes later in life – such as higher levels of educational attainment and higher earnings. it is also well known that there exist large disparities in the quality of education by geography and socioeconomic background. compared to children born to lowincome parents, those born to higher - income families can better afford to move and live in areas with high - quality schools. the sorting of families by income and their desire for better educational opportunities leads to enclaves of higher - quality and higher - spending schools that are separated from areas of economically less - advantaged populations and lower - quality schools. to a degree, this residential segregation has been perpetuated by our system of school financing that relies heavily on local property tax funding. local financing of public schools leads to a bundling of two distinct choices – residential choice and school choice – and increases the degree of socioeconomic segregation across school districts. we can promote greater income mobility by unbundling the residential and school choices. this can be done in one of two ways. the first is to work to equalize school quality across location, while the second is to allow parents more choice of schools from a given location. along the lines of the first approach, new york fed research has shown that school finance reforms that seek to equalize funding across school districts by reducing the role of local property taxes can go a long way in decreasing residential segregation and equalizing quality of education. 6 the key mechanism is that such reforms make underperforming neighborhoods more attractive, thus reducing socioeconomic segregation and leading to consequent gains in peer quality in previously - challenged enclaves. this in turn reduces disparities in school quality stemming from reduced socioeconomic segregation. on the second approach, there exists research indicating that school vouchers that enable students to move to private schools or better - quality public schools can lead to improvements in public school quality and student performance by increasing competition among schools. 7 it is important to note, though, that not all voucher programs are created equally, and the design of the program matters in how vouchers impact school quality. charter schools have provided another source of school choice in education. more research into evaluating the