Klaas Knot, Governor of Netherlands Central Financial institution in this speech:
Yesterday was King’s Day within the Netherlands. The day we have a good time the birthday of our king. Having a monarchy is without doubt one of the nice many issues the Dutch and the Swedes have in frequent.
Our King’s Day is a nationwide vacation with flea markets on each sq., music and beer within the excessive streets, and your entire nation dressed up in orange to have a good time.
And yearly I believe to myself: “Mamma Mia, right here we go once more.”
This thought additionally crossed my thoughts a number of weeks in the past, when the latest episode of market turmoil began – with the failure of Silicon Valley Financial institution and the autumn of Credit score Suisse.
However are we truly ‘going once more’?
Alfred Nobel offers some knowledge to reply this query. He mentioned: “One can state, with out exaggeration, that the remark of and the seek for similarities and variations are the idea of all human data.”
In saying this, he captured precisely what we have to do in case of turmoil, in case of a brand new shock to our monetary system.
After all, each shock is exclusive. However typically, there are similarities. And sometimes, there are variations with earlier shocks. And it’s as much as us to tell apart between them. To attract on classes discovered for what is comparable. And to search for new classes for what’s completely different.
We’ve discovered rather a lot from earlier shocks. They allowed us to establish vulnerabilities in our monetary system. And we have now been capable of strengthen our resilience and stability because of this.
To date, no shock has been the Waterloo of our international monetary system. However we have to stay vigilant. We have to stay diligent, in mapping, measuring and monitoring vulnerabilities. Previous and new.
So let’s put the tremendous trouper on the latest episode of market turmoil, and take a more in-depth have a look at what occurred, what vulnerabilities have been uncovered, and what classes we will study from similarities and variations with the previous.
Learn the speech for classes…
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