first is the record of job creation in texas. for obvious reasons, this has become a subject of intense interest to the national media ; my staff and i are being hounded by the national press corps for data and commentary. today i will try to separate fact from fiction, with a heavy focus on the data. the second matter i wish to address is why i dissented from the consensus at the last meeting of the federal open market committee ( fomc ). the two would appear to be unrelated, but might well be – though not in a manner that would be readily apparent. i will conclude by trying to connect the two dots. texas ’ record of job creation here is a chart that displays nonagricultural employment growth by federal reserve districts over the past 21½ years, using the employment levels of 1990 as a base of 100 and tracing job creation through june. bis central bankers ’ speeches to illustrate a point, i am going to separate out three districts : the second, headquartered at the new york fed and consisting of new york, southwestern connecticut, puerto rico, the u. s. virgin islands and a dozen counties in new jersey ; the eleventh, represented by the dallas fed, made up of texas, the wooded areas of eastern louisiana and southern new mexico ; and the twelfth, or the san francisco fed ’ s district, which consists of california, eight other states, the northern mariana islands, american samoa and guam. the state of new york produces 72 percent of the economic output of the second district ; texas accounts for 95 percent of the eleventh district ’ s output ; and california accounts for 62 percent of the twelfth district ’ s output. one might consider this second chart to be an imperfect but reasonable proxy for the employment growth over the past two decades of the three largest states in the country. bis central bankers ’ speeches like the chart for employment in all 12 of the fed ’ s districts, the three districts ’ employment levels are indexed to 100 in 1990. you will see that, at the end of june, the index stands at 150 for the eleventh district, 125 for the twelfth and 103 for the second. nonagricultural employment growth in texas has compounded at an annual rate of 1. 95 percent over 21½ years ; that of california at 0. 57 percent ; and new york ’ s at 0. 19 percent. if you are interested in the output of their workers over this same period, the compound annual growth rate of texas gdp is 3.

us $ 800 billion, but it has now expanded to almost $ 8 trillion. meanwhile, the ratio of the us federal debt to its gdp has surged to a record high since the world war ii. fourth, uncertainties still loom large with the pandemic raging across the world, and the global supply chain and industry chain are facing a high risk of being disrupted or even broken. during such times, countries should have worked together to overcome difficulties ; nevertheless, a small number of developed countries have kept making troubles, pursuing the so - called unilateralism, and placing their own interests above everything else, which has actually damaged the interests of their peoples. for example, retaining high tariffs on chinese goods can push inflation up even faster. fifth, given the spillover effects arising from floodgates opened by the us and europe, emerging market economies and developing countries are forced to take countermeasures, albeit painful. the central banks of russia, turkey and brazil have started to raise interest rates, and some developed economies have also signaled that they would implement contractionary policy. how these policy orientations would impact the world economy from a macro - economic perspective is still unclear for the moment. 1 / 4 bis central bankers'speeches china didn ’ t flood the market with liquidity while strengthening its macro policy responses. some countries criticize that china failed to implement adequate policy responses and make sufficient contribution to global economic recovery, which is evidently a bias or misconception. in fact, china has made quite strong policy efforts. for monetary policy, in 2020, a total of rmb19. 6 trillion of new loans were extended, up 12. 8 %, and aggregate financing grew by rmb 35 trillion or 13. 3 %, which is rarely seen across the world. by lowering interest rates on loans and reducing service charges, the financial sector injected rmb 1. 5 trillion to the real economy last year. for fiscal policy, in 2020, china cut taxes and fees by over rmb2. 5 trillion for businesses and residents. a budget deficit rate of 3. 7 %, new anti - epidemic government bonds, special local government bonds, and additional investments by policy banks have added up to over 10 % of china ’ s nominal gdp. more importantly, our policies yielded the best results. in 2020, china saw positive economic growth, contributing to the recovery of our neighboring countries and major trading partners, thus preventing the world from plunging into more severe contraction. china has provided around