, with resulting disturbances in their financial markets. the resort to capital controls to deal with financial market disturbances of the sort a number of emerging economies have experienced would be a step backwards from the trend toward financial market liberalization, and in the end would not be effective. the maintenance of financial stability in an environment of global capital markets, therefore, calls for greater attention by governments to the soundness of public policy. governments are beginning to recognize that the release of timely and accurate economic and financial data is a critical element to the maintenance of financial stability. we do not know what the appropriate amount of disclosure is, but it is pretty clear from the mexican experience in 1994 and the recent thai experience that the level of disclosure was too little. more comprehensive public information on the financial condition of a country, including current data on commitments by governments to buy or sell currencies in the future and on non - performing loans of a country ’ s financial institutions, would allow investors - - both domestic and international - - to make more rational investment decisions. such disclosure would help to avoid sudden and sharp reversals in the investment positions of investors once they become aware of the true status of a country ’ s and a banking system ’ s financial health. more timely and more comprehensive disclosure of financial data also would help sensitize the principal economic policymakers of a country to the potential emerging threats to its financial stability. thus, as international financial markets continue to expand, central banks have twin objectives : achieving macroeconomic stability and a safe and sound financial system that can take advantage of stability while exploiting the inevitable new technological advances. the changing dynamics of modern global financial systems also require that central banks address the inevitable increase of systemic risk. it is probably fair to say that the very efficiency of global financial markets, engendered by the rapid proliferation of financial products, also has the capability of transmitting mistakes at a far faster pace throughout the financial system in ways that were unknown a generation ago, and not even remotely imagined in the nineteenth century. today ’ s technology enables single individuals to initiate massive transactions with very rapid execution. clearly, not only has the productivity of global finance increased markedly, but so, obviously, has the ability to generate losses at a previously inconceivable rate. moreover, increasing global financial efficiency, by creating the mechanisms for mistakes to ricochet throughout the global financial system, has patently increased the potential for systemic risk. why not then, one might ask, bar or contain the expansion of global

ben s bernanke : challenges in housing and mortgage markets speech by mr ben s bernanke, chairman of the board of governors of the federal reserve system, at the operation hope global financial dignity summit, atlanta, georgia, 15 november 2012. * * * good afternoon. i ’ d like to thank john bryant and operation hope for inviting me to speak today. i ’ d also like to congratulate operation hope and the ebenezer baptist church on the grand opening of the hope financial dignity center, which holds the promise of becoming a tremendous resource for the people of atlanta and sits next to martin luther king ’ s home church. dr king ’ s legacy to our society is strong and enduring, and the new center is very much in the spirit of his work. the past few years have been difficult for many americans and their communities. at the federal reserve, we understand the depth of the problem and the need for action, and we will continue to use the policy tools that we have to help support economic recovery. we also know that the burdens of a weak economy and the benefits of economic growth often are not equally shared, and that, to be truly effective, policymakers must take into account how their decisions affect the least advantaged, not just the economy as a whole. my remarks today will focus on an important part of our economy, the housing sector. housing and housing finance played a central role in touching off the financial crisis and the associated recession, and the ensuing wave of foreclosures wreaked great damage on communities across the country. as i will discuss, for the first time in a number of years, the housing sector is improving, adding to growth and jobs. but the housing revival still faces significant obstacles, and the benefits of that revival remain quite uneven. strengthening and broadening the housing recovery remain a critical challenge for policymakers, lenders, and community leaders. the degree to which that challenge is met will help determine the strength and sustainability of the economic recovery and the extent to which its benefits are broadly felt. developments in housing and housing finance the multiyear boom and bust in housing prices of the past decade, together with the sharp increase in mortgage delinquencies and defaults that followed, were among the principal causes of the financial crisis and the ensuing deep recession – a recession that cost some 8 million jobs. and continued weakness in housing – reflected in falling prices, low rates of new construction, and historic levels of foreclosure