several years - a finding that should remind us of the pitfalls of reading too much into any year - to - year change in our measures of economic well - being. the bls ’ s consumer expenditure data suggest a rise in inequality over the 1980s comparable to that shown by the census family income figures. however, during the first half of the 1990s, inequality partially receded for consumer expenditures while for income it continued to rise ( table 1 ). the consumption data used in these calculations include only what individuals purchase directly out of their incomes and accumulated savings. recently, researchers have extended the analysis using a more complete and more theoretically appealing measure of consumption that includes the indirect flow of services from the stock of durable goods that they already own - houses, vehicles, and major appliances. 5 as one might expect, although this measure of consumption has a profile somewhat similar to that seen in the current expenditure data over the 1980s and the first half of the 1990s, it shows still lower levels of inequality overall and a clearer pattern of consumption smoothing during the 1981 - 83 recession. the information available from the consumer expenditure survey can be used to calculate another interesting measure of the well - being of households : changes in inequality in the ownership of consumer durables. the bls staff has updated tabulations of these data that they prepared - 3for me several years ago ( table 2 ). of course, ownership rates for household durables clearly rise with income. but for a number of goods - for example, dishwashers, clothes dryers, microwaves, and motor vehicles - the distribution of ownership rates by income decile has become more equal over time. even though we may be able to develop an array of measures of current and past trends in inequality - such as those that i have described and potentially others that may be presented at this symposium - we will likely still face considerable uncertainty about how to interpret those measures and about what the future may hold for the trend and the distribution of economic well - being. wealth has always been created, virtually by definition, when individuals use their growing knowledge, in conjunction with an expanding capital stock, to produce goods and services of value. the process of wealth creation in the united states has evolved in a number of important ways. over the last century, we have learned how to be more efficient in meeting the needs of consumers, and thus we have moved from producing essentials to the production of more discretionary goods and services. moreover, these goods and services have been, over

we shall always see truth in fragments and from different points of vision. ” let me conclude. iitans like you will lead india ’ s race for ideas. the india that you will graduate into is much more capable of using your technological prowess than the india we graduated into. i wish you unlimited ambition, and forecast great success for those of you who continue thinking and challenging. but as you go out in the world, remember our tradition of debate in an environment of respect and tolerance. by upholding it, by fighting for it, you will be repaying your teachers in this great institution, and your parents who worked so hard to send you here. and you will be doing our country a great patriotic service. thank you and good luck. bis central bankers ’ speeches