v k sharma : unearned and unshared prosperity are unsustainable keynote address by mr v k sharma, executive director of the reserve bank of india, at the international leadership symposium on “ rethinking capitalism and globalization ”, organized by the world forum for ethics in business in partnership with the world bank institute at the european parliament, brussels, belgium, 30 november 2012. * * * the views expressed are those of the author and not of the reserve bank of india. 1. as is invariably the case with any major crisis, the ongoing global financial and economic crisis, including lately, of course, the eurozone crisis, have unleashed a passionate debate over the design of a new architecture of finance, capitalism and globalization. however, the trouble has been not so much with the inter - temporally evolved architecture of finance, capitalism and globalization as really with how it was actually worked in practice. the apocalyptic denouement, almost bordering on a veritable global financial and economic nuclear winter, happened not because the existing systems and best practices failed but because those responsible for implementing, and enforcing, them failed them! after all, of all risks to regulators and regulatees alike, human resources risk is by far the most serious as it is the source of all risks as confirmed by the ongoing financial and economic cataclysm. effective and credible systems are not about right architecture but about right people for right people can make a wrong architecture work while wrong people can ’ t make even a right architecture work! this “ right people - wrong people ” trade - off is substantively, and effectively, about “ ethics - expediency ” trade - off, with the overwhelming anecdotal evidence of “ expediency ” prevailing over “ ethics ”! the crux of the matter is what we need is not more, or less, regulation, but good regulation, and governance. this has been the undoing of regulators / supervisors and financial firms / banks alike. but unfortunately broad - spectrum and generic failure of an inertial regulatory and supervisory system worldwide, especially in the west, precipitated the unprecedented global financial crisis and the resulting great recession. this regulatory and supervisory inertia and imperviousness to the early warning signals of unprecedented underpricing of risk, which were galore, and aplenty, pre - crisis, is graphically epitomized by the most no - holds - barred acknowledgement of this – though it

ryuzo miyao : economic activity and prices in japan and monetary policy summary of a speech by mr ryuzo miyao, member of the policy board of the bank of japan, at a meeting with business leaders, tokushima, 22 september 2010. * i. economic activity and prices a. overview * * first, i will talk about the current situation of the japanese economy. at present, an issue of concern is the possible negative impact of instability in foreign exchange and stock markets on corporate profits and business and consumer confidence. in this environment, there has been a slowing of exports to east asian and other emerging economies that have driven the recovery from the sharp decline after the bankruptcy of lehman brothers. private consumption, meanwhile, remains relatively firm, supported by the extremely hot summer this year and a last - minute increase in demand for durable consumer goods ahead of the expiration of government subsidies. on the whole, japan ’ s economy shows further signs of a moderate recovery. b. developments in overseas economies let me now look at developments in those overseas economies that are influencing japan ’ s export - driven recovery. among the emerging economies, the chinese economy has been boosted by fixed asset investment – comprising business fixed and real estate investments – as well as private consumption, as a result of major stimulus measures to the value of 4 trillion renminbi. since the rapid growth accelerated speculative investment in real estate, making it difficult for middle - class citizens to buy housing, the authorities implemented a series of measures, including window guidance, to restrain the increase in real estate transactions. subsequently, real estate investment slowed down and production and fixed investment in sectors related to construction decelerated. still, the rate of economic growth remains high. with respect to those neighboring asian nations whose economies have been spurred by exports to china, although the rate of expansion is showing signs of deceleration, growth remains high with domestic demand still robust. with regard to economic activity in the euro area, production has expanded due to increasing exports to emerging economies, although the growth differs by country. for example, in germany its strong recovery has been the main driving force, with real gdp for the april – june quarter of 2010 having grown at an annualized 9 percent from the previous quarter. by contrast, greece, which is saddled with the burden of fiscal consolidation, has recorded negative growth ; and spain, with its burst housing bubble, has not been able to find a way out of a low growth predicament. for the euro