1 00:01:53,333 --> 00:01:55,634 Hello and welcome a very warm 2 00:01:55,634 --> 00:01:57,299 Hello and welcome a very warm welcome from my site. My name 3 00:01:57,299 --> 00:01:59,133 welcome from my site. My name is Gumbo and I’m the director 4 00:01:59,133 --> 00:02:01,834 is Gumbo and I’m the director of Blue and it’s a great honor 5 00:02:01,834 --> 00:02:04,234 of Blue and it’s a great honor to welcome you today to this 6 00:02:04,234 --> 00:02:06,833 to welcome you today to this session on monetary policy 7 00:02:06,833 --> 00:02:09,801 session on monetary policy after the pandemic um so what 8 00:02:09,801 --> 00:02:11,967 after the pandemic um so what is uh our monetary policy 9 00:02:11,967 --> 00:02:13,333 is uh our monetary policy framework going to look like 10 00:02:13,333 --> 00:02:17,333 framework going to look like how should it evolve it is for 11 00:02:17,333 --> 00:02:18,933 how should it evolve it is for blue and for us as an 12 00:02:18,933 --> 00:02:20,666 blue and for us as an institution and important 13 00:02:20,666 --> 00:02:23,967 institution and important moment um also because. 14 00:02:23,967 --> 00:02:27,966 moment um also because. Auermann, Jean Claude Trichet 15 00:02:27,966 --> 00:02:31,899 Auermann, Jean Claude Trichet auf der Service is Levingers äh 16 00:02:31,899 --> 00:02:33,900 auf der Service is Levingers äh today, yeah, is last boat 17 00:02:33,900 --> 00:02:37,967 today, yeah, is last boat meeting today. Ähm be do want 18 00:02:37,967 --> 00:02:41,067 meeting today. Ähm be do want to ähm we dit one to have ähm I 19 00:02:41,067 --> 00:02:43,667 to ähm we dit one to have ähm I have to say a proper Fairway in 20 00:02:43,667 --> 00:02:46,300 have to say a proper Fairway in Wich ähm we have a dinner ähm 21 00:02:46,300 --> 00:02:48,800 Wich ähm we have a dinner ähm and ähm can all meet mone 22 00:02:48,800 --> 00:02:50,533 and ähm can all meet mone friends here in Brussels ähm 23 00:02:50,533 --> 00:02:54,467 friends here in Brussels ähm now that was the p 24 00:02:59,834 --> 00:03:01,700 made it impossible for as and 25 00:03:01,700 --> 00:03:05,400 made it impossible for as and fortschnittley to have ähm real 26 00:03:05,400 --> 00:03:06,767 fortschnittley to have ähm real Dinner and real ähm fairwayl 27 00:03:06,767 --> 00:03:07,967 Dinner and real ähm fairwayl I’m am very butchoping we can 28 00:03:07,967 --> 00:03:10,767 I’m am very butchoping we can do that äh very suon, but it 29 00:03:10,767 --> 00:03:13,333 do that äh very suon, but it least äh we have ähm die 30 00:03:13,333 --> 00:03:14,867 least äh we have ähm die Opertunity to to meet and this 31 00:03:14,867 --> 00:03:17,866 Opertunity to to meet and this cass äh here in this äh virtual 32 00:03:17,866 --> 00:03:20,367 cass äh here in this äh virtual Panel and ähm of course I do 33 00:03:20,367 --> 00:03:22,833 Panel and ähm of course I do one to eh still take the moment 34 00:03:22,833 --> 00:03:26,334 one to eh still take the moment ähm two express Jean-Claude my 35 00:03:26,334 --> 00:03:30,200 ähm two express Jean-Claude my my gratitude to you, it’s been 36 00:03:30,200 --> 00:03:31,600 my gratitude to you, it’s been absolutely fantastic to work 37 00:03:31,600 --> 00:03:34,266 absolutely fantastic to work with you uh a great European um 38 00:03:34,266 --> 00:03:36,600 with you uh a great European um in the last um well, eight and 39 00:03:36,600 --> 00:03:39,233 in the last um well, eight and a half years um and the 40 00:03:39,233 --> 00:03:40,933 a half years um and the guidance uh I’ve learned so 41 00:03:40,933 --> 00:03:42,599 guidance uh I’ve learned so much um and II really have to 42 00:03:42,599 --> 00:03:45,967 much um and II really have to say I was always impressed by 43 00:03:45,967 --> 00:03:48,733 say I was always impressed by your intellectual curiosity um 44 00:03:48,733 --> 00:03:50,600 your intellectual curiosity um on all issues you are asking 45 00:03:50,600 --> 00:03:52,000 on all issues you are asking questions you were interested 46 00:03:52,000 --> 00:03:55,266 questions you were interested in the substance I. Also 47 00:03:55,266 --> 00:03:57,767 in the substance I. Also impressed by how strongly you 48 00:03:57,767 --> 00:03:59,800 impressed by how strongly you always defended our 49 00:03:59,800 --> 00:04:00,966 always defended our intellectual independence and I 50 00:04:00,966 --> 00:04:02,633 intellectual independence and I think I can speak on behalf of 51 00:04:02,633 --> 00:04:07,566 think I can speak on behalf of all of uh uh staff all scholars 52 00:04:07,566 --> 00:04:10,133 all of uh uh staff all scholars and of course of myself. uh you 53 00:04:10,133 --> 00:04:12,733 and of course of myself. uh you support for um our intellectual 54 00:04:12,733 --> 00:04:15,299 support for um our intellectual independence um uh was 55 00:04:15,299 --> 00:04:16,767 independence um uh was absolutely critical and it goes 56 00:04:16,767 --> 00:04:18,266 absolutely critical and it goes hand in hand with the 57 00:04:18,266 --> 00:04:19,499 hand in hand with the intellectual curiosity to 58 00:04:19,499 --> 00:04:21,833 intellectual curiosity to intellectual curiosity and 59 00:04:21,833 --> 00:04:22,367 intellectual curiosity and intellectual independence 60 00:04:22,367 --> 00:04:23,967 intellectual independence really go hand in hand and 61 00:04:23,967 --> 00:04:27,000 really go hand in hand and last, but not the least. Um I 62 00:04:27,000 --> 00:04:30,266 last, but not the least. Um I do want to thank you for um uh 63 00:04:30,266 --> 00:04:32,867 do want to thank you for um uh really almost 9 years of 64 00:04:32,867 --> 00:04:34,733 really almost 9 years of constant guidance um on all 65 00:04:34,733 --> 00:04:36,934 constant guidance um on all kinds of matters and when you 66 00:04:36,934 --> 00:04:38,900 kinds of matters and when you direct an institution, a 67 00:04:38,900 --> 00:04:39,834 direct an institution, a growing institution like Blue, 68 00:04:39,834 --> 00:04:41,567 growing institution like Blue, there’s always a lot of issues 69 00:04:41,567 --> 00:04:43,800 there’s always a lot of issues that come on the table of the 70 00:04:43,800 --> 00:04:44,900 that come on the table of the director and I could really 71 00:04:44,900 --> 00:04:46,367 director and I could really trust uh trust you in the last 72 00:04:46,367 --> 00:04:47,767 trust uh trust you in the last years in your friendship in 73 00:04:47,767 --> 00:04:49,534 years in your friendship in your advice and your guidance 74 00:04:49,534 --> 00:04:51,700 your advice and your guidance and so so really thank you very 75 00:04:51,700 --> 00:04:56,300 and so so really thank you very much uh for this uh wonderful. 76 00:04:56,300 --> 00:04:58,700 much uh for this uh wonderful. And since you have become the 77 00:04:58,700 --> 00:05:00,234 And since you have become the honorary chairman of the uh, 78 00:05:00,234 --> 00:05:01,467 honorary chairman of the uh, it’s not the end of our 79 00:05:01,467 --> 00:05:03,000 it’s not the end of our relationship. We will uh, of 80 00:05:03,000 --> 00:05:04,234 relationship. We will uh, of course, stay in very close 81 00:05:04,234 --> 00:05:07,933 course, stay in very close contact um and um uh continue 82 00:05:07,933 --> 00:05:10,767 contact um and um uh continue to exchange. I’m sure um I have 83 00:05:10,767 --> 00:05:14,333 to exchange. I’m sure um I have also the pleasure now um to uh 84 00:05:14,333 --> 00:05:16,367 also the pleasure now um to uh welcome um our incoming 85 00:05:16,367 --> 00:05:20,333 welcome um our incoming chairman um a cannon um who 86 00:05:20,333 --> 00:05:23,767 chairman um a cannon um who will um share um the session uh 87 00:05:23,767 --> 00:05:26,167 will um share um the session uh today uh and let me um also 88 00:05:26,167 --> 00:05:28,500 today uh and let me um also welcome very much um our guests 89 00:05:28,500 --> 00:05:34,333 welcome very much um our guests for this. Um uh um and governor 90 00:05:34,333 --> 00:05:36,000 for this. Um uh um and governor uh from uh the People’s Bank of 91 00:05:36,000 --> 00:05:39,733 uh from uh the People’s Bank of China and former chairwoman of 92 00:05:39,733 --> 00:05:41,434 China and former chairwoman of the Federal Reserve Governor 93 00:05:41,434 --> 00:05:44,000 the Federal Reserve Governor Joe from uh former governor of 94 00:05:44,000 --> 00:05:46,866 Joe from uh former governor of the Central Bank of China 95 00:05:46,866 --> 00:05:48,833 the Central Bank of China People’s Bank of China um, and 96 00:05:48,833 --> 00:05:51,699 People’s Bank of China um, and of course you will participate 97 00:05:51,699 --> 00:05:54,533 of course you will participate um with uh the European head on 98 00:05:54,533 --> 00:05:56,400 um with uh the European head on um as the former president of 99 00:05:56,400 --> 00:05:59,900 um as the former president of the European Central Bank. 100 00:05:59,900 --> 00:06:02,333 the European Central Bank. Without further ado, let me um 101 00:06:02,333 --> 00:06:03,933 Without further ado, let me um again uh express my gratitude 102 00:06:03,933 --> 00:06:07,066 again uh express my gratitude to use but also to express my 103 00:06:07,066 --> 00:06:09,299 to use but also to express my gratitude to um to a uh the 104 00:06:09,299 --> 00:06:11,766 gratitude to um to a uh the cannon for um having a agreed 105 00:06:11,766 --> 00:06:14,500 cannon for um having a agreed to uh to share our institution 106 00:06:14,500 --> 00:06:16,533 to uh to share our institution and um I look very much look 107 00:06:16,533 --> 00:06:18,633 and um I look very much look forward to um also to working 108 00:06:18,633 --> 00:06:19,733 forward to um also to working with you in the coming years. 109 00:06:19,733 --> 00:06:22,000 with you in the coming years. Thank you so much and uh over 110 00:06:22,000 --> 00:06:24,866 Thank you so much and uh over to you AI. Thank you very much 111 00:06:24,866 --> 00:06:29,066 to you AI. Thank you very much from when I see the faces of uh 112 00:06:29,066 --> 00:06:32,799 from when I see the faces of uh going to show some of some 113 00:06:32,799 --> 00:06:34,233 going to show some of some history. you know that I 114 00:06:34,233 --> 00:06:35,700 history. you know that I actually, I hope you feel the 115 00:06:35,700 --> 00:06:38,367 actually, I hope you feel the same because this uh great I 116 00:06:38,367 --> 00:06:41,133 same because this uh great I have this have been outstanding 117 00:06:41,133 --> 00:06:43,467 have this have been outstanding leaders Jose banging during the 118 00:06:43,467 --> 00:06:45,533 leaders Jose banging during the last 20 years or even more and 119 00:06:45,533 --> 00:06:47,933 last 20 years or even more and and there are many memories no 120 00:06:47,933 --> 00:06:49,467 and there are many memories no book can be written about this 121 00:06:49,467 --> 00:06:51,867 book can be written about this decades without them. It’s a 122 00:06:51,867 --> 00:06:53,167 decades without them. It’s a great privilege for Google so 123 00:06:53,167 --> 00:06:57,067 great privilege for Google so all of us. 124 00:07:27,733 --> 00:07:30,534 She even came far away into the 125 00:07:30,534 --> 00:07:31,966 She even came far away into the north to teach one generation 126 00:07:31,966 --> 00:07:33,933 north to teach one generation of young PhD economists when 127 00:07:33,933 --> 00:07:37,066 of young PhD economists when she was in her 30s, then it was 128 00:07:37,066 --> 00:07:38,533 she was in her 30s, then it was assisting James Tobin this 129 00:07:38,533 --> 00:07:40,833 assisting James Tobin this young economist never forget it 130 00:07:40,833 --> 00:07:41,734 young economist never forget it and they actually that’s all 131 00:07:41,734 --> 00:07:44,867 and they actually that’s all gone through well. The gents 132 00:07:44,867 --> 00:07:47,467 gone through well. The gents yours. Thank you so much and 133 00:07:47,467 --> 00:07:49,900 yours. Thank you so much and let me begin by congratulating 134 00:07:49,900 --> 00:07:52,600 let me begin by congratulating on Claude on a very successful 135 00:07:52,600 --> 00:07:56,733 on Claude on a very successful term as of frugal through this. 136 00:07:56,733 --> 00:07:59,767 term as of frugal through this. And then so many other ways you 137 00:07:59,767 --> 00:08:02,200 And then so many other ways you contribute enormously to our 138 00:08:02,200 --> 00:08:03,634 contribute enormously to our understanding of the most 139 00:08:03,634 --> 00:08:05,233 understanding of the most important economic policy 140 00:08:05,233 --> 00:08:07,500 important economic policy issues of our day and 141 00:08:07,500 --> 00:08:09,500 issues of our day and particularly to those facing 142 00:08:09,500 --> 00:08:12,934 particularly to those facing central banks. the policy 143 00:08:12,934 --> 00:08:14,434 central banks. the policy challenges facing central banks 144 00:08:14,434 --> 00:08:16,967 challenges facing central banks have evolved more than I would 145 00:08:16,967 --> 00:08:19,533 have evolved more than I would have imagined possible during 146 00:08:19,533 --> 00:08:21,100 have imagined possible during the time that we have served 147 00:08:21,100 --> 00:08:23,699 the time that we have served the central bankers to what I 148 00:08:23,699 --> 00:08:25,433 the central bankers to what I believe that we first met at 149 00:08:25,433 --> 00:08:29,600 believe that we first met at the BIS in November of 2010 150 00:08:29,600 --> 00:08:32,733 the BIS in November of 2010 and. At that time was just 151 00:08:32,733 --> 00:08:34,566 and. At that time was just dialing into the world of 152 00:08:34,566 --> 00:08:38,533 dialing into the world of unconventional monetary policy, 153 00:08:38,533 --> 00:08:41,867 unconventional monetary policy, Claude presided over the BIS 154 00:08:41,867 --> 00:08:43,767 Claude presided over the BIS Sunday night dinners. We’re 155 00:08:43,767 --> 00:08:46,333 Sunday night dinners. We’re leaving central bankers engage 156 00:08:46,333 --> 00:08:48,800 leaving central bankers engage in intimate and friendly, but 157 00:08:48,800 --> 00:08:51,967 in intimate and friendly, but also very frank conversation at 158 00:08:51,967 --> 00:08:54,267 also very frank conversation at my first dinner, Sean Claude I 159 00:08:54,267 --> 00:08:55,900 my first dinner, Sean Claude I remember your introducing me to 160 00:08:55,900 --> 00:08:58,300 remember your introducing me to the group and giving me a very 161 00:08:58,300 --> 00:09:01,834 the group and giving me a very warm welcome in your elegant. 162 00:09:01,834 --> 00:09:04,299 warm welcome in your elegant. But you always insisted on 163 00:09:04,299 --> 00:09:06,500 But you always insisted on substantive conversation and 164 00:09:06,500 --> 00:09:08,766 substantive conversation and that night I remember finding 165 00:09:08,766 --> 00:09:11,567 that night I remember finding myself on the hot seat trying 166 00:09:11,567 --> 00:09:13,801 myself on the hot seat trying to explain to this 167 00:09:13,801 --> 00:09:16,500 to explain to this exceptionally knowledgeable 168 00:09:16,500 --> 00:09:18,467 exceptionally knowledgeable group. Why the Fed had just a 169 00:09:18,467 --> 00:09:21,633 group. Why the Fed had just a couple of days before announced 170 00:09:21,633 --> 00:09:24,300 couple of days before announced a 600 Billion-dollar asset 171 00:09:24,300 --> 00:09:28,233 a 600 Billion-dollar asset purchase program. uh the group 172 00:09:28,233 --> 00:09:29,934 purchase program. uh the group was concerned about how the 173 00:09:29,934 --> 00:09:33,400 was concerned about how the Fed’s actions were impacting. 174 00:09:33,400 --> 00:09:36,000 Fed’s actions were impacting. Markets and worried about 175 00:09:36,000 --> 00:09:37,100 Markets and worried about conditions in their own 176 00:09:37,100 --> 00:09:40,233 conditions in their own countries I’ve enjoyed many 177 00:09:40,233 --> 00:09:41,400 countries I’ve enjoyed many engaging discussions with you, 178 00:09:41,400 --> 00:09:43,966 engaging discussions with you, Sean Claude for many years and 179 00:09:43,966 --> 00:09:45,966 Sean Claude for many years and in different venues and you’re 180 00:09:45,966 --> 00:09:47,667 in different venues and you’re thinking he’s very much 181 00:09:47,667 --> 00:09:49,600 thinking he’s very much informed my understanding of 182 00:09:49,600 --> 00:09:52,266 informed my understanding of the challenges facing central 183 00:09:52,266 --> 00:09:55,800 the challenges facing central banks when Jean-Claude I began 184 00:09:55,800 --> 00:09:57,700 banks when Jean-Claude I began our careers in central banking, 185 00:09:57,700 --> 00:09:59,767 our careers in central banking, the challenge was to bring 186 00:09:59,767 --> 00:10:01,300 the challenge was to bring inflation down and keep it 187 00:10:01,300 --> 00:10:03,867 inflation down and keep it under control and achieving 188 00:10:03,867 --> 00:10:06,734 under control and achieving that aim required establishing 189 00:10:06,734 --> 00:10:09,834 that aim required establishing a credible commitment. To boost 190 00:10:09,834 --> 00:10:11,733 a credible commitment. To boost short-term interest rates 191 00:10:11,733 --> 00:10:13,200 short-term interest rates sufficiently when inflation 192 00:10:13,200 --> 00:10:17,134 sufficiently when inflation reared its ugly head in today’s 193 00:10:17,134 --> 00:10:19,767 reared its ugly head in today’s world Central bankers also need 194 00:10:19,767 --> 00:10:22,801 world Central bankers also need to establish credibility but 195 00:10:22,801 --> 00:10:24,266 to establish credibility but now it’s to boost inflation 196 00:10:24,266 --> 00:10:27,834 now it’s to boost inflation when it’s stuck below target 197 00:10:27,834 --> 00:10:29,900 when it’s stuck below target levels and not to allow it to 198 00:10:29,900 --> 00:10:32,167 levels and not to allow it to drift down for a prolonged 199 00:10:32,167 --> 00:10:33,967 drift down for a prolonged period for most developed 200 00:10:33,967 --> 00:10:37,234 period for most developed countries Central banks. this 201 00:10:37,234 --> 00:10:38,866 countries Central banks. this requires the use of 202 00:10:38,866 --> 00:10:41,267 requires the use of unconventional policies on an 203 00:10:41,267 --> 00:10:44,767 unconventional policies on an ongoing basis will. The 204 00:10:44,767 --> 00:10:47,700 ongoing basis will. The pandemic struck it become clear 205 00:10:47,700 --> 00:10:49,300 pandemic struck it become clear it’s a challenge facing central 206 00:10:49,300 --> 00:10:51,866 it’s a challenge facing central banks had changed completely 207 00:10:51,866 --> 00:10:54,166 banks had changed completely and then in the environment we 208 00:10:54,166 --> 00:10:57,400 and then in the environment we now face pushing inflation up 209 00:10:57,400 --> 00:10:59,934 now face pushing inflation up is not only necessary but 210 00:10:59,934 --> 00:11:03,734 is not only necessary but exceptionally and unexpectedly 211 00:11:03,734 --> 00:11:05,267 exceptionally and unexpectedly difficult The Federal Reserve 212 00:11:05,267 --> 00:11:07,834 difficult The Federal Reserve could it’s target short-term 213 00:11:07,834 --> 00:11:09,234 could it’s target short-term interest rate effectively to 214 00:11:09,234 --> 00:11:12,166 interest rate effectively to zero in December of 2008, that 215 00:11:12,166 --> 00:11:14,667 zero in December of 2008, that was shortly after. Failure of 216 00:11:14,667 --> 00:11:18,966 was shortly after. Failure of Lehman and at the time the FOMC 217 00:11:18,966 --> 00:11:21,233 Lehman and at the time the FOMC statement said it expected to 218 00:11:21,233 --> 00:11:24,799 statement said it expected to keep it there for some time 219 00:11:24,799 --> 00:11:26,833 keep it there for some time that was America’s first 220 00:11:26,833 --> 00:11:28,733 that was America’s first experience with the liquidity 221 00:11:28,733 --> 00:11:30,234 experience with the liquidity traps since the Great 222 00:11:30,234 --> 00:11:32,834 traps since the Great Depression and I frankly never 223 00:11:32,834 --> 00:11:35,699 Depression and I frankly never imagined that sometime we 224 00:11:35,699 --> 00:11:38,466 imagined that sometime we translate into seven full years 225 00:11:38,466 --> 00:11:40,799 translate into seven full years and then inflation even after 226 00:11:40,799 --> 00:11:42,534 and then inflation even after the unemployment rate had 227 00:11:42,534 --> 00:11:44,834 the unemployment rate had declined to three and a half 228 00:11:44,834 --> 00:11:46,633 declined to three and a half percent, which is well below 229 00:11:46,633 --> 00:11:48,467 percent, which is well below estimates of its longer than 230 00:11:48,467 --> 00:11:51,767 estimates of its longer than normal level. Would still not 231 00:11:51,767 --> 00:11:55,633 normal level. Would still not reach 2% over the past decade. 232 00:11:55,633 --> 00:11:57,399 reach 2% over the past decade. Inflation is average only one 233 00:11:57,399 --> 00:11:59,800 Inflation is average only one and a half percent in the 234 00:11:59,800 --> 00:12:01,367 and a half percent in the United States and now following 235 00:12:01,367 --> 00:12:04,500 United States and now following the pandemic we again find 236 00:12:04,500 --> 00:12:06,901 the pandemic we again find ourselves in the middle of 237 00:12:06,901 --> 00:12:09,334 ourselves in the middle of another zero lower bound 238 00:12:09,334 --> 00:12:10,767 another zero lower bound episode with inflation slipping 239 00:12:10,767 --> 00:12:13,301 episode with inflation slipping well below the feds, 2% 240 00:12:13,301 --> 00:12:15,767 well below the feds, 2% objective the problem that 241 00:12:15,767 --> 00:12:17,500 objective the problem that central banks are dealing with 242 00:12:17,500 --> 00:12:19,967 central banks are dealing with is secular stagnation, which is 243 00:12:19,967 --> 00:12:23,366 is secular stagnation, which is resulting. World in which the 244 00:12:23,366 --> 00:12:24,667 resulting. World in which the normal level of interest rates 245 00:12:24,667 --> 00:12:28,399 normal level of interest rates is now exceptionally low This 246 00:12:28,399 --> 00:12:31,333 is now exceptionally low This reflects a certain of saving 247 00:12:31,333 --> 00:12:33,966 reflects a certain of saving and we investment spending and 248 00:12:33,966 --> 00:12:36,801 and we investment spending and developed economies likely 249 00:12:36,801 --> 00:12:38,500 developed economies likely reflecting slow productivity 250 00:12:38,500 --> 00:12:42,233 reflecting slow productivity growth and aging populations it 251 00:12:42,233 --> 00:12:44,199 growth and aging populations it decline in the level of 252 00:12:44,199 --> 00:12:46,299 decline in the level of equilibrium or neutral real 253 00:12:46,299 --> 00:12:49,933 equilibrium or neutral real interest rates has deprived 254 00:12:49,933 --> 00:12:50,533 interest rates has deprived central banks of much of the 255 00:12:50,533 --> 00:12:53,134 central banks of much of the room that they had to conduct 256 00:12:53,134 --> 00:12:55,600 room that they had to conduct monetary policy using the 257 00:12:55,600 --> 00:12:59,434 monetary policy using the normal. Of varying short-term 258 00:12:59,434 --> 00:13:01,900 normal. Of varying short-term policy rates in the typical 259 00:13:01,900 --> 00:13:05,767 policy rates in the typical recession the Fed cut short by 260 00:13:05,767 --> 00:13:08,600 recession the Fed cut short by 500 basis points, but before 261 00:13:08,600 --> 00:13:11,667 500 basis points, but before the pandemic estimates placed 262 00:13:11,667 --> 00:13:13,800 the pandemic estimates placed the neutral level of nominal 263 00:13:13,800 --> 00:13:15,933 the neutral level of nominal short rates and only two and a 264 00:13:15,933 --> 00:13:18,767 short rates and only two and a half percent that provides far 265 00:13:18,767 --> 00:13:21,734 half percent that provides far less scope for monetary policy 266 00:13:21,734 --> 00:13:23,800 less scope for monetary policy to respond to shocks and 267 00:13:23,800 --> 00:13:25,733 to respond to shocks and unfortunately the crisis could 268 00:13:25,733 --> 00:13:28,733 unfortunately the crisis could easily depressed normal yields 269 00:13:28,733 --> 00:13:32,201 easily depressed normal yields yet further. Suggest that with 270 00:13:32,201 --> 00:13:34,866 yet further. Suggest that with the neutral rate this low 271 00:13:34,866 --> 00:13:37,400 the neutral rate this low monetary policy is likely to be 272 00:13:37,400 --> 00:13:39,899 monetary policy is likely to be constrained by the effective of 273 00:13:39,899 --> 00:13:42,701 constrained by the effective of lower bound as much as 40% of 274 00:13:42,701 --> 00:13:46,299 lower bound as much as 40% of the time. the implication is 275 00:13:46,299 --> 00:13:48,000 the time. the implication is that asset purchases for 276 00:13:48,000 --> 00:13:49,267 that asset purchases for guidance and other 277 00:13:49,267 --> 00:13:51,800 guidance and other unconventional policies are 278 00:13:51,800 --> 00:13:54,300 unconventional policies are here to stay and we should 279 00:13:54,300 --> 00:13:55,799 here to stay and we should probably stop thinking of them 280 00:13:55,799 --> 00:13:58,800 probably stop thinking of them is unconventional since there’s 281 00:13:58,800 --> 00:14:01,833 is unconventional since there’s a new normal last. The Fed took 282 00:14:01,833 --> 00:14:04,266 a new normal last. The Fed took a further step to position 283 00:14:04,266 --> 00:14:06,467 a further step to position itself to address the problems 284 00:14:06,467 --> 00:14:08,667 itself to address the problems created by low neutral rates in 285 00:14:08,667 --> 00:14:12,400 created by low neutral rates in the effect of lower bound and 286 00:14:12,400 --> 00:14:14,167 the effect of lower bound and it wouldn’t surprise me for 287 00:14:14,167 --> 00:14:16,900 it wouldn’t surprise me for central banks eventually follow 288 00:14:16,900 --> 00:14:20,299 central banks eventually follow suit it adjusted its monetary 289 00:14:20,299 --> 00:14:23,133 suit it adjusted its monetary policy framework and strategy, 290 00:14:23,133 --> 00:14:25,701 policy framework and strategy, embracing and approach called 291 00:14:25,701 --> 00:14:27,466 embracing and approach called flexible average inflation 292 00:14:27,466 --> 00:14:31,700 flexible average inflation inflation targeting prior. 293 00:14:31,700 --> 00:14:35,299 inflation targeting prior. Change the objective was to 294 00:14:35,299 --> 00:14:38,366 Change the objective was to strive for 2% inflation at all 295 00:14:38,366 --> 00:14:40,667 strive for 2% inflation at all times. that was true regardless 296 00:14:40,667 --> 00:14:42,600 times. that was true regardless of whether inflation had 297 00:14:42,600 --> 00:14:45,899 of whether inflation had previously exceeded or fall 298 00:14:45,899 --> 00:14:48,966 previously exceeded or fall short of this target. In other 299 00:14:48,966 --> 00:14:51,333 short of this target. In other words, the Fed lit by guns by 300 00:14:51,333 --> 00:14:52,767 words, the Fed lit by guns by guns with respect to its 301 00:14:52,767 --> 00:14:55,800 guns with respect to its inflation objective the new 302 00:14:55,800 --> 00:14:58,600 inflation objective the new framework instead embraces a 303 00:14:58,600 --> 00:15:00,667 framework instead embraces a makeup strategy in which a long 304 00:15:00,667 --> 00:15:05,200 makeup strategy in which a long period. Inflation below 2% such 305 00:15:05,200 --> 00:15:07,600 period. Inflation below 2% such as we’ve had since the 2008 306 00:15:07,600 --> 00:15:10,500 as we’ve had since the 2008 financial crisis calls for a 307 00:15:10,500 --> 00:15:13,167 financial crisis calls for a period of inflation modestly 308 00:15:13,167 --> 00:15:16,701 period of inflation modestly above 2% for long enough that 309 00:15:16,701 --> 00:15:18,734 above 2% for long enough that inflation roughly averages 2% 310 00:15:18,734 --> 00:15:22,833 inflation roughly averages 2% of the time the overshoot of 2% 311 00:15:22,833 --> 00:15:26,233 of the time the overshoot of 2% inflation is intended to be 312 00:15:26,233 --> 00:15:29,266 inflation is intended to be transitory not permanent the 313 00:15:29,266 --> 00:15:31,100 transitory not permanent the change in interpretation of the 314 00:15:31,100 --> 00:15:33,067 change in interpretation of the inflation objective is 315 00:15:33,067 --> 00:15:35,867 inflation objective is important because. It there’s a 316 00:15:35,867 --> 00:15:37,667 important because. It there’s a truth that inflation 317 00:15:37,667 --> 00:15:39,867 truth that inflation expectations will slip below 2% 318 00:15:39,867 --> 00:15:43,833 expectations will slip below 2% over time and since inflation 319 00:15:43,833 --> 00:15:46,234 over time and since inflation expectations drive inflation 320 00:15:46,234 --> 00:15:47,900 expectations drive inflation itself, this would be a 321 00:15:47,900 --> 00:15:50,366 itself, this would be a dangerous development it would 322 00:15:50,366 --> 00:15:51,967 dangerous development it would serve to push inflation and 323 00:15:51,967 --> 00:15:55,633 serve to push inflation and nominal yields yet lower 324 00:15:55,633 --> 00:15:56,800 nominal yields yet lower intensifying the problems 325 00:15:56,800 --> 00:15:59,199 intensifying the problems associated with the effect of 326 00:15:59,199 --> 00:16:02,167 associated with the effect of lower bound I expect that the 327 00:16:02,167 --> 00:16:05,900 lower bound I expect that the Fed will follow this decision. 328 00:16:05,900 --> 00:16:08,733 Fed will follow this decision. With forward guidance that 329 00:16:08,733 --> 00:16:10,234 With forward guidance that establishes economic benchmarks 330 00:16:10,234 --> 00:16:12,699 establishes economic benchmarks or thresholds that will be used 331 00:16:12,699 --> 00:16:17,200 or thresholds that will be used in deciding how long the target 332 00:16:17,200 --> 00:16:20,466 in deciding how long the target short rate should remain at 333 00:16:20,466 --> 00:16:21,867 short rate should remain at zero, one way or another, my 334 00:16:21,867 --> 00:16:23,167 zero, one way or another, my guess is that we’re in for a 335 00:16:23,167 --> 00:16:24,767 guess is that we’re in for a very long period of 336 00:16:24,767 --> 00:16:27,233 very long period of exceptionally low rates and 337 00:16:27,233 --> 00:16:29,800 exceptionally low rates and asset purchases and another 338 00:16:29,800 --> 00:16:31,434 asset purchases and another change in the environment since 339 00:16:31,434 --> 00:16:34,133 change in the environment since I began my career in central 340 00:16:34,133 --> 00:16:35,833 I began my career in central banking is that we’ve seen a 341 00:16:35,833 --> 00:16:37,200 banking is that we’ve seen a flattening of the Phillips 342 00:16:37,200 --> 00:16:41,866 flattening of the Phillips curve. Over the last decade, 343 00:16:41,866 --> 00:16:45,166 curve. Over the last decade, inflation has shown very little 344 00:16:45,166 --> 00:16:46,834 inflation has shown very little responsiveness to changes in 345 00:16:46,834 --> 00:16:49,333 responsiveness to changes in labor markets, slack or 346 00:16:49,333 --> 00:16:50,801 labor markets, slack or economic activity, and that 347 00:16:50,801 --> 00:16:52,567 economic activity, and that suggests that unemployment may 348 00:16:52,567 --> 00:16:55,334 suggests that unemployment may need to fall to very low levels 349 00:16:55,334 --> 00:16:57,967 need to fall to very low levels during the next expansion and 350 00:16:57,967 --> 00:16:59,366 during the next expansion and stay at very low levels for 351 00:16:59,366 --> 00:17:03,200 stay at very low levels for quite a long time for inflation 352 00:17:03,200 --> 00:17:05,233 quite a long time for inflation to rise not just two but 353 00:17:05,233 --> 00:17:10,299 to rise not just two but somewhere above 2%. Concern is 354 00:17:10,299 --> 00:17:13,000 somewhere above 2%. Concern is that such a low interest rate 355 00:17:13,000 --> 00:17:15,233 that such a low interest rate tight labor market environment 356 00:17:15,233 --> 00:17:18,467 tight labor market environment may breed risks to financial 357 00:17:18,467 --> 00:17:20,267 may breed risks to financial stability. I worry it will 358 00:17:20,267 --> 00:17:23,467 stability. I worry it will foster reach for yield by the 359 00:17:23,467 --> 00:17:25,034 foster reach for yield by the behavior by investors and may 360 00:17:25,034 --> 00:17:27,566 behavior by investors and may touch off facet bubbles and 361 00:17:27,566 --> 00:17:29,900 touch off facet bubbles and rapid credit growth, which are 362 00:17:29,900 --> 00:17:32,767 rapid credit growth, which are the typical incidence of 363 00:17:32,767 --> 00:17:35,334 the typical incidence of financial market instability We 364 00:17:35,334 --> 00:17:36,834 financial market instability We did a great deal in the 365 00:17:36,834 --> 00:17:39,433 did a great deal in the aftermath of the 2008 crisis 366 00:17:39,433 --> 00:17:42,699 aftermath of the 2008 crisis to. to shore up the bank. And 367 00:17:42,699 --> 00:17:45,167 to. to shore up the bank. And to address weaknesses and 368 00:17:45,167 --> 00:17:46,766 to address weaknesses and derivative markets and in 369 00:17:46,766 --> 00:17:50,300 derivative markets and in payment settlement and clearing 370 00:17:50,300 --> 00:17:51,833 payment settlement and clearing systems, but we’ve done much 371 00:17:51,833 --> 00:17:53,199 systems, but we’ve done much less to address risks in the 372 00:17:53,199 --> 00:17:56,767 less to address risks in the shadow banking sector and I 373 00:17:56,767 --> 00:17:58,934 shadow banking sector and I think risks have shifted there 374 00:17:58,934 --> 00:18:02,201 think risks have shifted there in response to banking 375 00:18:02,201 --> 00:18:03,666 in response to banking regulation we saw during the 376 00:18:03,666 --> 00:18:05,234 regulation we saw during the pandemic. how significant those 377 00:18:05,234 --> 00:18:09,200 pandemic. how significant those risks now are in mid March is 378 00:18:09,200 --> 00:18:11,966 risks now are in mid March is concerned about the pandemic 379 00:18:11,966 --> 00:18:12,701 concerned about the pandemic escalated financial market. 380 00:18:12,701 --> 00:18:16,200 escalated financial market. Came on to extreme stress and 381 00:18:16,200 --> 00:18:17,734 Came on to extreme stress and then the United States to fit 382 00:18:17,734 --> 00:18:20,233 then the United States to fit was forced to intervene 383 00:18:20,233 --> 00:18:23,133 was forced to intervene massively on an emergency basis 384 00:18:23,133 --> 00:18:26,200 massively on an emergency basis to stem as fire sales and 385 00:18:26,200 --> 00:18:28,834 to stem as fire sales and contagion and to keep credit 386 00:18:28,834 --> 00:18:31,299 contagion and to keep credit flowing macro prudential tools 387 00:18:31,299 --> 00:18:33,767 flowing macro prudential tools will be needed to address the 388 00:18:33,767 --> 00:18:36,467 will be needed to address the emergence of such imbalances in 389 00:18:36,467 --> 00:18:38,500 emergence of such imbalances in the future before they become 390 00:18:38,500 --> 00:18:40,833 the future before they become major threats. but at least in 391 00:18:40,833 --> 00:18:42,934 major threats. but at least in the United States, the 392 00:18:42,934 --> 00:18:45,266 the United States, the available mac. Credential Tool 393 00:18:45,266 --> 00:18:48,867 available mac. Credential Tool kit is exceptionally limited 394 00:18:48,867 --> 00:18:50,399 kit is exceptionally limited that concerns me and I believe 395 00:18:50,399 --> 00:18:52,934 that concerns me and I believe it’s an issue that needs to be 396 00:18:52,934 --> 00:18:55,133 it’s an issue that needs to be addressed soon if we’re to 397 00:18:55,133 --> 00:18:58,267 addressed soon if we’re to reconcile price stability and 398 00:18:58,267 --> 00:19:00,633 reconcile price stability and financial stability objectives. 399 00:19:00,633 --> 00:19:03,100 financial stability objectives. so let me stop there with those 400 00:19:03,100 --> 00:19:04,834 so let me stop there with those opening comments and I look 401 00:19:04,834 --> 00:19:06,633 opening comments and I look forward to work further 402 00:19:06,633 --> 00:19:09,800 forward to work further discussion. 403 00:19:11,167 --> 00:19:13,067 Thank you very much Janet for 404 00:19:13,067 --> 00:19:16,234 Thank you very much Janet for your very thoughtful comments. 405 00:19:16,234 --> 00:19:17,000 your very thoughtful comments. I’m sure we’ll come back to the 406 00:19:17,000 --> 00:19:19,766 I’m sure we’ll come back to the issues of uh new framework and 407 00:19:19,766 --> 00:19:20,999 issues of uh new framework and also financial stability, which 408 00:19:20,999 --> 00:19:23,399 also financial stability, which may be a big challenge when the 409 00:19:23,399 --> 00:19:25,833 may be a big challenge when the rates will be low for longer 410 00:19:25,833 --> 00:19:27,267 rates will be low for longer and we are happy to have with 411 00:19:27,267 --> 00:19:28,900 and we are happy to have with US Governor Governor Wanna show 412 00:19:28,900 --> 00:19:31,266 US Governor Governor Wanna show also served over 15 years as 413 00:19:31,266 --> 00:19:32,500 also served over 15 years as the governor of the People’s 414 00:19:32,500 --> 00:19:34,666 the governor of the People’s Bank of China, It’s largely 415 00:19:34,666 --> 00:19:37,067 Bank of China, It’s largely given a credit for the Chinese 416 00:19:37,067 --> 00:19:38,833 given a credit for the Chinese financial reform agenda, 417 00:19:38,833 --> 00:19:40,233 financial reform agenda, including liberalization of 418 00:19:40,233 --> 00:19:41,100 including liberalization of interest rates and exchange 419 00:19:41,100 --> 00:19:42,499 interest rates and exchange rates. I was happy to learn to 420 00:19:42,499 --> 00:19:45,900 rates. I was happy to learn to know. When I was a mammogram 421 00:19:45,900 --> 00:19:48,367 know. When I was a mammogram joined the club and uh we 422 00:19:48,367 --> 00:19:49,967 joined the club and uh we mainly spoke about economics 423 00:19:49,967 --> 00:19:51,534 mainly spoke about economics and monetary policy, but first 424 00:19:51,534 --> 00:19:53,900 and monetary policy, but first question governor asked me how 425 00:19:53,900 --> 00:19:55,767 question governor asked me how populations are values in 426 00:19:55,767 --> 00:19:58,000 populations are values in Finland and it was I thought 427 00:19:58,000 --> 00:19:59,267 Finland and it was I thought it’s quite interesting group of 428 00:19:59,267 --> 00:20:00,900 it’s quite interesting group of people. I’m sitting there and I 429 00:20:00,900 --> 00:20:03,467 people. I’m sitting there and I like to get him oh seven 430 00:20:03,467 --> 00:20:05,833 like to get him oh seven symphony values a month later 431 00:20:05,833 --> 00:20:06,933 symphony values a month later he came back and said that 432 00:20:06,933 --> 00:20:08,267 he came back and said that there were two of those which 433 00:20:08,267 --> 00:20:11,266 there were two of those which were new to me, which was quite 434 00:20:11,266 --> 00:20:12,800 were new to me, which was quite quite impressive. Thank you 435 00:20:12,800 --> 00:20:15,299 quite impressive. Thank you very much. Joining us and I 436 00:20:15,299 --> 00:20:19,267 very much. Joining us and I give the floor to you uh some 437 00:20:19,267 --> 00:20:25,233 give the floor to you uh some some very much uh uh it’s my 438 00:20:25,233 --> 00:20:27,466 some very much uh uh it’s my great pleasure to see my old 439 00:20:27,466 --> 00:20:30,801 great pleasure to see my old friend aloud uh chairman year 440 00:20:30,801 --> 00:20:36,201 friend aloud uh chairman year and uh and also uh going to the 441 00:20:36,201 --> 00:20:40,434 and uh and also uh going to the land Uh I also like to thank uh 442 00:20:40,434 --> 00:20:46,733 land Uh I also like to thank uh mister for his uh let. 443 00:20:46,733 --> 00:20:50,334 mister for his uh let. Graduates uh for uh his uh and 444 00:20:50,334 --> 00:20:54,167 Graduates uh for uh his uh and the very successful leadership 445 00:20:54,167 --> 00:20:57,200 the very successful leadership in uh which has been contacting 446 00:20:57,200 --> 00:21:00,866 in uh which has been contacting uh be thinking uh our Europe 447 00:21:00,866 --> 00:21:04,699 uh be thinking uh our Europe and on the whole world uh 448 00:21:04,699 --> 00:21:10,533 and on the whole world uh especially uh the uh uh to 449 00:21:10,533 --> 00:21:14,201 especially uh the uh uh to bring the pua and uh the of our 450 00:21:14,201 --> 00:21:19,066 bring the pua and uh the of our power. so-called uh well. Asia 451 00:21:19,066 --> 00:21:22,367 power. so-called uh well. Asia uh so to strengthen the 452 00:21:22,367 --> 00:21:25,234 uh so to strengthen the communication between Asia and 453 00:21:25,234 --> 00:21:28,767 communication between Asia and Europe uh and also uh a young 454 00:21:28,767 --> 00:21:31,634 Europe uh and also uh a young lady that has been giving me a 455 00:21:31,634 --> 00:21:34,400 lady that has been giving me a great supporter. uh for uh a 456 00:21:34,400 --> 00:21:38,433 great supporter. uh for uh a so-called international uh 457 00:21:38,433 --> 00:21:41,133 so-called international uh financial uh for uh which uh 458 00:21:41,133 --> 00:21:43,866 financial uh for uh which uh have uh any meetings uh each 459 00:21:43,866 --> 00:21:50,399 have uh any meetings uh each year China. Uh I would like to 460 00:21:50,399 --> 00:21:55,899 year China. Uh I would like to see it’s uh it’s going to a guy 461 00:21:55,899 --> 00:22:00,400 see it’s uh it’s going to a guy at the to play uh uh as a key 462 00:22:00,400 --> 00:22:03,799 at the to play uh uh as a key think tank uh and the to give 463 00:22:03,799 --> 00:22:06,734 think tank uh and the to give us a lot of opportunity to 464 00:22:06,734 --> 00:22:09,733 us a lot of opportunity to discuss uh very interesting and 465 00:22:09,733 --> 00:22:11,934 discuss uh very interesting and very important to use uh 466 00:22:11,934 --> 00:22:14,933 very important to use uh anyway. Thank you very much. 467 00:22:14,933 --> 00:22:19,134 anyway. Thank you very much. Let me comment uh that’s the 468 00:22:19,134 --> 00:22:22,634 Let me comment uh that’s the money policy regarding to the 469 00:22:22,634 --> 00:22:26,199 money policy regarding to the pandemic and uh maybe uh what 470 00:22:26,199 --> 00:22:28,534 pandemic and uh maybe uh what we should do after the 471 00:22:28,534 --> 00:22:31,667 we should do after the pandemic. 472 00:23:01,200 --> 00:23:04,267 In supporting the economy, uh 473 00:23:04,267 --> 00:23:06,767 In supporting the economy, uh especially in prevention from a 474 00:23:06,767 --> 00:23:09,967 especially in prevention from a sensitive uh bankruptcy lay off 475 00:23:09,967 --> 00:23:14,867 sensitive uh bankruptcy lay off and the cash flow uh uh such as 476 00:23:14,867 --> 00:23:17,567 and the cash flow uh uh such as drugs uh the size of a balance 477 00:23:17,567 --> 00:23:19,834 drugs uh the size of a balance sheet of the central bank uh 478 00:23:19,834 --> 00:23:24,000 sheet of the central bank uh expanded uh enormously several 479 00:23:24,000 --> 00:23:25,933 expanded uh enormously several central banker also provided uh 480 00:23:25,933 --> 00:23:29,333 central banker also provided uh expanded the swap plan and to 481 00:23:29,333 --> 00:23:31,133 expanded the swap plan and to uh the other central banks are 482 00:23:31,133 --> 00:23:33,199 uh the other central banks are worried a sudden stop of 483 00:23:33,199 --> 00:23:38,600 worried a sudden stop of foreign currency pregnancy. 484 00:23:38,699 --> 00:23:41,699 Uh I agree uh very much of this 485 00:23:41,699 --> 00:23:45,434 Uh I agree uh very much of this year uh to mention that’s uh 486 00:23:45,434 --> 00:23:47,534 year uh to mention that’s uh this kind of uh part of the 487 00:23:47,534 --> 00:23:51,234 this kind of uh part of the making. Uh money money through 488 00:23:51,234 --> 00:23:52,900 making. Uh money money through policy by sensitively. Could be 489 00:23:52,900 --> 00:23:58,400 policy by sensitively. Could be pumped into the economy. uh 490 00:23:58,400 --> 00:24:00,967 pumped into the economy. uh instantly boost the economy to 491 00:24:00,967 --> 00:24:04,867 instantly boost the economy to fight the impact of the Colgate 492 00:24:04,867 --> 00:24:14,667 fight the impact of the Colgate um and uh. Uh One that’s uh the 493 00:24:14,667 --> 00:24:17,833 um and uh. Uh One that’s uh the fiscal policy could not adopted 494 00:24:17,833 --> 00:24:21,767 fiscal policy could not adopted a problem and uh there were 495 00:24:21,767 --> 00:24:24,367 a problem and uh there were some constraint money through 496 00:24:24,367 --> 00:24:29,201 some constraint money through policy uh to some extend it’s 497 00:24:29,201 --> 00:24:30,799 policy uh to some extend it’s uh replace a partially of some 498 00:24:30,799 --> 00:24:35,767 uh replace a partially of some of the fiscal function. Uh it’s 499 00:24:35,767 --> 00:24:40,000 of the fiscal function. Uh it’s I think uh necessary uh but uh 500 00:24:40,000 --> 00:24:43,367 I think uh necessary uh but uh it’s a lead to uh the father. 501 00:24:43,367 --> 00:24:46,500 it’s a lead to uh the father. And the consideration of uh 502 00:24:46,500 --> 00:24:51,833 And the consideration of uh money for and the relationship. 503 00:25:24,767 --> 00:25:27,233 Very important to relieve the 504 00:25:27,233 --> 00:25:31,334 Very important to relieve the pain of social distancing you 505 00:25:31,334 --> 00:25:36,300 pain of social distancing you may also be inevitable uh 506 00:25:36,300 --> 00:25:37,867 may also be inevitable uh that’s uh the low interest 507 00:25:37,867 --> 00:25:40,900 that’s uh the low interest rates as a chairman and my man 508 00:25:40,900 --> 00:25:44,733 rates as a chairman and my man and the e the zero lower bound 509 00:25:44,733 --> 00:25:48,933 and the e the zero lower bound uh the situation make a part of 510 00:25:48,933 --> 00:25:53,467 uh the situation make a part of the uh excessive uh for into 511 00:25:53,467 --> 00:25:59,800 the uh excessive uh for into the. Our kids and to feel uh 512 00:25:59,800 --> 00:26:05,133 the. Our kids and to feel uh potential bubbles. If since I’m 513 00:26:05,133 --> 00:26:09,200 potential bubbles. If since I’m realistic to have uh two high 514 00:26:09,200 --> 00:26:11,433 realistic to have uh two high expectation that money through 515 00:26:11,433 --> 00:26:13,367 expectation that money through policy can be used to that as a 516 00:26:13,367 --> 00:26:15,633 policy can be used to that as a very effective Struct measure 517 00:26:15,633 --> 00:26:19,266 very effective Struct measure to target the specific and the 518 00:26:19,266 --> 00:26:22,634 to target the specific and the economic uh that’s uh what we 519 00:26:22,634 --> 00:26:25,300 economic uh that’s uh what we hope uh that’s uh uh it could 520 00:26:25,300 --> 00:26:28,433 hope uh that’s uh uh it could be uh injected to the economy 521 00:26:28,433 --> 00:26:30,699 be uh injected to the economy to target a specific uses 522 00:26:30,699 --> 00:26:38,299 to target a specific uses rather than uh too much. To ??? 523 00:26:38,299 --> 00:26:43,666 rather than uh too much. To ??? uh the uh the market uh this 524 00:26:43,666 --> 00:26:47,300 uh the uh the market uh this this uh caveat and a lot of 525 00:26:47,300 --> 00:26:50,401 this uh caveat and a lot of amount of liquidity injection 526 00:26:50,401 --> 00:26:53,634 amount of liquidity injection may uh inflation expectation 527 00:26:53,634 --> 00:26:56,799 may uh inflation expectation and we need to predict it. 528 00:26:56,799 --> 00:26:59,866 and we need to predict it. That’s uh the inflation in the 529 00:26:59,866 --> 00:27:01,766 That’s uh the inflation in the future uh with the change it’s 530 00:27:01,766 --> 00:27:06,300 future uh with the change it’s a farms that Venetian and 531 00:27:06,300 --> 00:27:08,333 a farms that Venetian and Measurements and we need to 532 00:27:08,333 --> 00:27:12,466 Measurements and we need to study that’s as early as 533 00:27:12,466 --> 00:27:12,933 study that’s as early as possible after our money 534 00:27:12,933 --> 00:27:18,267 possible after our money through policy is uh aggregate 535 00:27:18,267 --> 00:27:20,833 through policy is uh aggregate policy in nature. This fiscal 536 00:27:20,833 --> 00:27:24,433 policy in nature. This fiscal is more inclined to target a 537 00:27:24,433 --> 00:27:27,500 is more inclined to target a particular group and address a 538 00:27:27,500 --> 00:27:31,334 particular group and address a structure problem. Kyle this 539 00:27:31,334 --> 00:27:33,300 structure problem. Kyle this conventional understanding has 540 00:27:33,300 --> 00:27:36,933 conventional understanding has been challenged and the uh the 541 00:27:36,933 --> 00:27:40,767 been challenged and the uh the pandemic more on the uh show on 542 00:27:40,767 --> 00:27:43,299 pandemic more on the uh show on the money policy with the 543 00:27:43,299 --> 00:27:45,533 the money policy with the independence of the central 544 00:27:45,533 --> 00:27:49,166 independence of the central banker affected. Further we 545 00:27:49,166 --> 00:27:53,667 banker affected. Further we need to study uh the I see it’s 546 00:27:53,667 --> 00:27:56,500 need to study uh the I see it’s a strategy as well as possible 547 00:27:56,500 --> 00:27:59,134 a strategy as well as possible and to find a ways to have an 548 00:27:59,134 --> 00:28:00,933 and to find a ways to have an effective with the leveraging 549 00:28:00,933 --> 00:28:04,333 effective with the leveraging measures after the panic as 550 00:28:04,333 --> 00:28:08,400 measures after the panic as well as uh to cook to call uh 551 00:28:08,400 --> 00:28:11,367 well as uh to cook to call uh the potential uh I set the bar 552 00:28:11,367 --> 00:28:14,733 the potential uh I set the bar so this is uh I think that’s uh 553 00:28:14,733 --> 00:28:17,800 so this is uh I think that’s uh on the one hand uh we uh 554 00:28:17,800 --> 00:28:21,633 on the one hand uh we uh formally support at the center. 555 00:28:21,633 --> 00:28:26,699 formally support at the center. Good policy money policies to 556 00:28:26,699 --> 00:28:29,734 Good policy money policies to the but uh on the other hand we 557 00:28:29,734 --> 00:28:33,667 the but uh on the other hand we should the that you can uh on 558 00:28:33,667 --> 00:28:36,466 should the that you can uh on underestimate the effect of the 559 00:28:36,466 --> 00:28:41,267 underestimate the effect of the uh current money from policy 560 00:28:41,267 --> 00:28:45,733 uh current money from policy The second uh comment is um uh 561 00:28:45,733 --> 00:28:48,000 The second uh comment is um uh many policy objective for 562 00:28:48,000 --> 00:28:53,000 many policy objective for functions uh you. And after the 563 00:28:53,000 --> 00:28:57,800 functions uh you. And after the panic, Or you can come in. 564 00:28:57,800 --> 00:29:00,701 panic, Or you can come in. inflation targets uh has become 565 00:29:00,701 --> 00:29:03,234 inflation targets uh has become a very good choice as a singer 566 00:29:03,234 --> 00:29:06,333 a very good choice as a singer money policy goers as shown by 567 00:29:06,333 --> 00:29:07,800 money policy goers as shown by many countries, we’re 568 00:29:07,800 --> 00:29:12,300 many countries, we’re successful practice. practice. 569 00:29:12,300 --> 00:29:15,267 successful practice. practice. Nevertheless, in the past 20 570 00:29:15,267 --> 00:29:17,800 Nevertheless, in the past 20 years, the growing complexity 571 00:29:17,800 --> 00:29:20,267 years, the growing complexity of the economic and the 572 00:29:20,267 --> 00:29:22,834 of the economic and the financial conditions has a 573 00:29:22,834 --> 00:29:28,866 financial conditions has a broad up the demand for uh 574 00:29:28,866 --> 00:29:31,467 broad up the demand for uh objective functions of a 575 00:29:31,467 --> 00:29:36,801 objective functions of a policy. Uh the past two decades 576 00:29:36,801 --> 00:29:39,533 policy. Uh the past two decades we meet at the age of financial 577 00:29:39,533 --> 00:29:41,967 we meet at the age of financial crisis, the bubble burst and 578 00:29:41,967 --> 00:29:45,967 crisis, the bubble burst and then the the September 11 579 00:29:45,967 --> 00:29:48,399 then the the September 11 incident uh later on it’s on 580 00:29:48,399 --> 00:29:52,899 incident uh later on it’s on the ham uh you want followed by 581 00:29:52,899 --> 00:29:57,867 the ham uh you want followed by the subpar crisis I later on 582 00:29:57,867 --> 00:30:01,300 the subpar crisis I later on become a good financial crisis 583 00:30:01,300 --> 00:30:06,800 become a good financial crisis uh and also some. Uh southern 584 00:30:06,800 --> 00:30:10,733 uh and also some. Uh southern European problem the turmoil um 585 00:30:10,733 --> 00:30:12,467 European problem the turmoil um so during the financial crisis 586 00:30:12,467 --> 00:30:16,400 so during the financial crisis and the distress institution 587 00:30:16,400 --> 00:30:22,434 and the distress institution need uh some of uh uh more pros 588 00:30:22,434 --> 00:30:24,367 need uh some of uh uh more pros Monday to policy including 589 00:30:24,367 --> 00:30:26,500 Monday to policy including rescue including financial 590 00:30:26,500 --> 00:30:29,234 rescue including financial stability policy. Uh it’s uh uh 591 00:30:29,234 --> 00:30:35,000 stability policy. Uh it’s uh uh become uh a quite a top. 592 00:30:35,333 --> 00:30:38,366 Consideration now under the 593 00:30:38,366 --> 00:30:41,766 Consideration now under the pandemic money to pay attention 594 00:30:41,766 --> 00:30:44,966 pandemic money to pay attention to the GDP recovery and to 595 00:30:44,966 --> 00:30:49,967 to the GDP recovery and to create jobs so that is uh what 596 00:30:49,967 --> 00:30:52,767 create jobs so that is uh what I would like to say it’s uh 597 00:30:52,767 --> 00:30:56,967 I would like to say it’s uh it’s the phenomenon and the 598 00:30:56,967 --> 00:30:58,366 it’s the phenomenon and the reality that’s money through 599 00:30:58,366 --> 00:31:01,000 reality that’s money through policy now shifting from a 600 00:31:01,000 --> 00:31:04,367 policy now shifting from a singer uh inflation target. To 601 00:31:04,367 --> 00:31:11,267 singer uh inflation target. To uh targets uh Marty objective 602 00:31:11,267 --> 00:31:16,267 uh targets uh Marty objective function. Uh and so uh we would 603 00:31:16,267 --> 00:31:19,200 function. Uh and so uh we would like to comment. uh what is uh 604 00:31:19,200 --> 00:31:23,199 like to comment. uh what is uh the other objective uh 605 00:31:23,199 --> 00:31:26,333 the other objective uh candidate uh accepted uh the 606 00:31:26,333 --> 00:31:28,934 candidate uh accepted uh the inflation beside the inflation 607 00:31:28,934 --> 00:31:30,334 inflation beside the inflation target the mainstream uh 608 00:31:30,334 --> 00:31:33,967 target the mainstream uh economic growth and the uh 609 00:31:33,967 --> 00:31:36,667 economic growth and the uh employment. Uh this is a 610 00:31:36,667 --> 00:31:40,634 employment. Uh this is a particular relevant on this uhm 611 00:31:40,634 --> 00:31:43,400 particular relevant on this uhm another event for us on the 612 00:31:43,400 --> 00:31:46,701 another event for us on the financial stability uh 613 00:31:46,701 --> 00:31:49,701 financial stability uh including uh it’s uh the crisis 614 00:31:49,701 --> 00:31:52,900 including uh it’s uh the crisis a solution. which has gained 615 00:31:52,900 --> 00:31:55,267 a solution. which has gained the prominent since uh the 616 00:31:55,267 --> 00:31:58,900 the prominent since uh the global financial crisis and for 617 00:31:58,900 --> 00:32:01,799 global financial crisis and for many developing countries uh 618 00:32:01,799 --> 00:32:05,934 many developing countries uh and the emerging economy. Some 619 00:32:05,934 --> 00:32:07,200 and the emerging economy. Some payments international payment 620 00:32:07,200 --> 00:32:09,767 payments international payment would be a special importance 621 00:32:09,767 --> 00:32:12,234 would be a special importance and the concerns because uh 622 00:32:12,234 --> 00:32:16,167 and the concerns because uh balance payment uh problem may 623 00:32:16,167 --> 00:32:20,634 balance payment uh problem may cause a a payment uh and the 624 00:32:20,634 --> 00:32:23,433 cause a a payment uh and the the problem and also 625 00:32:23,433 --> 00:32:25,133 the problem and also consequences that you’ve 626 00:32:25,133 --> 00:32:30,301 consequences that you’ve changed it to uh and uh uh uh 627 00:32:30,301 --> 00:32:32,867 changed it to uh and uh uh uh money policies for that. that. 628 00:32:32,867 --> 00:32:38,300 money policies for that. that. uh maybe. Uh the economy uh the 629 00:32:38,300 --> 00:32:41,867 uh maybe. Uh the economy uh the balance so it’s not uh that’s 630 00:32:41,867 --> 00:32:43,634 balance so it’s not uh that’s uh important by far, I think of 631 00:32:43,634 --> 00:32:45,866 uh important by far, I think of many developing country and the 632 00:32:45,866 --> 00:32:48,334 many developing country and the emerging economy they have to 633 00:32:48,334 --> 00:32:52,833 emerging economy they have to uh to pay a lot of attention uh 634 00:32:52,833 --> 00:32:55,967 uh to pay a lot of attention uh in the uh uh objective function 635 00:32:55,967 --> 00:33:01,767 in the uh uh objective function to consider the payment my home 636 00:33:01,767 --> 00:33:04,000 to consider the payment my home uh. in the globe, There are a 637 00:33:04,000 --> 00:33:06,600 uh. in the globe, There are a group of uh transitional 638 00:33:06,600 --> 00:33:08,766 group of uh transitional economy, transforming from. 639 00:33:08,766 --> 00:33:11,200 economy, transforming from. Traditionally essentially plan 640 00:33:11,200 --> 00:33:14,466 Traditionally essentially plan to markets the economy so many 641 00:33:14,466 --> 00:33:17,067 to markets the economy so many policy needs to assist it 642 00:33:17,067 --> 00:33:19,900 policy needs to assist it rather than your sister uh the 643 00:33:19,900 --> 00:33:24,000 rather than your sister uh the reform and open up process. Uh 644 00:33:24,000 --> 00:33:27,567 reform and open up process. Uh it’s accelerates the transition 645 00:33:27,567 --> 00:33:30,634 it’s accelerates the transition to the market and the economy 646 00:33:30,634 --> 00:33:32,733 to the market and the economy the results of this kind of 647 00:33:32,733 --> 00:33:34,400 the results of this kind of process money through policy 648 00:33:34,400 --> 00:33:38,766 process money through policy will not fund the uh uh uh. 649 00:33:38,766 --> 00:33:44,800 will not fund the uh uh uh. Transmission mechanism and the 650 00:33:45,233 --> 00:33:49,900 macro uh may not responded uh 651 00:33:49,900 --> 00:33:54,000 macro uh may not responded uh Russian the to the money policy 652 00:33:54,000 --> 00:33:58,000 Russian the to the money policy so my suggestion is to study 653 00:33:58,000 --> 00:34:01,333 so my suggestion is to study that’s uh to to the meat. 654 00:34:01,333 --> 00:34:05,700 that’s uh to to the meat. that’s uh central bank later on 655 00:34:05,700 --> 00:34:10,000 that’s uh central bank later on May have uh uh. 656 00:34:41,201 --> 00:34:44,400 Uh simplify the way um expert 657 00:34:44,400 --> 00:34:46,933 Uh simplify the way um expert system maybe needed to set up 658 00:34:46,933 --> 00:34:50,767 system maybe needed to set up for the weight for each 659 00:34:50,767 --> 00:34:53,700 for the weight for each objective some objectives maybe 660 00:34:53,700 --> 00:34:55,600 objective some objectives maybe overlapping among each other. 661 00:34:55,600 --> 00:34:59,834 overlapping among each other. Why some others may contradict 662 00:34:59,834 --> 00:35:04,299 Why some others may contradict uh from each other satur 663 00:35:04,299 --> 00:35:06,666 uh from each other satur relationship can be expressed 664 00:35:06,666 --> 00:35:09,834 relationship can be expressed uh in mathematical models of uh 665 00:35:09,834 --> 00:35:13,000 uh in mathematical models of uh Marty objective of 666 00:35:13,000 --> 00:35:16,200 Marty objective of optimization. The weights of 667 00:35:16,200 --> 00:35:19,167 optimization. The weights of each objective in the function 668 00:35:19,167 --> 00:35:21,801 each objective in the function will be determined by economic 669 00:35:21,801 --> 00:35:27,167 will be determined by economic social and conditions. 670 00:35:27,167 --> 00:35:31,433 social and conditions. Additionally, the weight uh in 671 00:35:31,433 --> 00:35:33,799 Additionally, the weight uh in the market and objective 672 00:35:33,799 --> 00:35:36,834 the market and objective function need to be modified uh 673 00:35:36,834 --> 00:35:39,367 function need to be modified uh with a different period and 674 00:35:39,367 --> 00:35:41,034 with a different period and different condition, and this 675 00:35:41,034 --> 00:35:43,400 different condition, and this kind of adjustments to 676 00:35:43,400 --> 00:35:45,700 kind of adjustments to mechanism can be found through 677 00:35:45,700 --> 00:35:48,200 mechanism can be found through uh there’s research recursive 678 00:35:48,200 --> 00:35:52,967 uh there’s research recursive programming model uh next is my 679 00:35:52,967 --> 00:35:55,966 programming model uh next is my my third uh observation. uh 680 00:35:55,966 --> 00:35:59,299 my third uh observation. uh it’s. The coordination, or 681 00:35:59,299 --> 00:36:02,334 it’s. The coordination, or maybe the new global 682 00:36:02,334 --> 00:36:05,000 maybe the new global institution uh to uh strengthen 683 00:36:05,000 --> 00:36:06,666 institution uh to uh strengthen the central bank and the that 684 00:36:06,666 --> 00:36:09,000 the central bank and the that work together to deal with the 685 00:36:09,000 --> 00:36:11,334 work together to deal with the problem like a pan and the 686 00:36:11,334 --> 00:36:15,801 problem like a pan and the first coming in global users. 687 00:36:15,801 --> 00:36:19,267 first coming in global users. You look back 20 years ago 688 00:36:19,267 --> 00:36:21,333 You look back 20 years ago money through policies very 689 00:36:21,333 --> 00:36:24,700 money through policies very difficult domestic policy uh it 690 00:36:24,700 --> 00:36:27,700 difficult domestic policy uh it country if I have a different 691 00:36:27,700 --> 00:36:30,533 country if I have a different inflation different base uh 692 00:36:30,533 --> 00:36:31,799 inflation different base uh transmission magnetism you 693 00:36:31,799 --> 00:36:34,367 transmission magnetism you change your rates and the 694 00:36:34,367 --> 00:36:38,301 change your rates and the carrier uh for uh 695 00:36:38,301 --> 00:36:41,266 carrier uh for uh characteristics at that time uh 696 00:36:41,266 --> 00:36:43,767 characteristics at that time uh almost nobody talked to talk 697 00:36:43,767 --> 00:36:45,234 almost nobody talked to talk about money through policies 698 00:36:45,234 --> 00:36:46,567 about money through policies fear over uh especially those 699 00:36:46,567 --> 00:36:49,600 fear over uh especially those of. 700 00:37:18,301 --> 00:37:21,333 That’s the flow uh basically uh 701 00:37:21,333 --> 00:37:24,300 That’s the flow uh basically uh it’s the reason the divider 702 00:37:24,300 --> 00:37:27,100 it’s the reason the divider domestic condition, but now the 703 00:37:27,100 --> 00:37:30,566 domestic condition, but now the situation change a lot uh so uh 704 00:37:30,566 --> 00:37:32,734 situation change a lot uh so uh in the recent years we 705 00:37:32,734 --> 00:37:34,466 in the recent years we repeatedly to talk about the 706 00:37:34,466 --> 00:37:37,367 repeatedly to talk about the money money through policies 707 00:37:37,367 --> 00:37:42,600 money money through policies over uh the shortage of uh a 708 00:37:42,600 --> 00:37:46,200 over uh the shortage of uh a global uh uh and uh we need to 709 00:37:46,200 --> 00:37:52,234 global uh uh and uh we need to set up the uh the. See for uh 710 00:37:52,234 --> 00:37:56,299 set up the uh the. See for uh assisting each other uh and uh 711 00:37:56,299 --> 00:38:00,534 assisting each other uh and uh yeah that’s uh it’s uh it’s 712 00:38:00,534 --> 00:38:03,300 yeah that’s uh it’s uh it’s become a headache for the uh 713 00:38:03,300 --> 00:38:08,201 become a headache for the uh for the uh it’s uh it’s always 714 00:38:08,201 --> 00:38:12,367 for the uh it’s uh it’s always try to uh you know the little 715 00:38:12,367 --> 00:38:16,066 try to uh you know the little fund uh safety uh sometime of 716 00:38:16,066 --> 00:38:19,267 fund uh safety uh sometime of this kind of uh captive flow. 717 00:38:19,267 --> 00:38:22,367 this kind of uh captive flow. May cause a kind of instability 718 00:38:22,367 --> 00:38:25,733 May cause a kind of instability uh especially for the markets 719 00:38:25,733 --> 00:38:27,267 uh especially for the markets and the summer of developing 720 00:38:27,267 --> 00:38:30,233 and the summer of developing countries uh and the we are now 721 00:38:30,233 --> 00:38:33,733 countries uh and the we are now a lot of uh highly adapted uh 722 00:38:33,733 --> 00:38:35,734 a lot of uh highly adapted uh economy uh they need to use the 723 00:38:35,734 --> 00:38:37,801 economy uh they need to use the fiscal policy and monitor their 724 00:38:37,801 --> 00:38:39,899 fiscal policy and monitor their policy to be uh this this time 725 00:38:39,899 --> 00:38:43,966 policy to be uh this this time but uh it’s a uh uh we need a 726 00:38:43,966 --> 00:38:47,334 but uh it’s a uh uh we need a more of uh a car action and to 727 00:38:47,334 --> 00:38:50,000 more of uh a car action and to do that. The single country is 728 00:38:50,000 --> 00:38:53,299 do that. The single country is always very difficult to serve 729 00:38:53,299 --> 00:39:01,100 always very difficult to serve as the flow and the uh the the 730 00:39:01,100 --> 00:39:05,834 as the flow and the uh the the situation so uh that’s uh my uh 731 00:39:05,834 --> 00:39:09,900 situation so uh that’s uh my uh uh. and it’s uh after the panic 732 00:39:09,900 --> 00:39:12,233 uh. and it’s uh after the panic we need to formally uh 733 00:39:12,233 --> 00:39:15,934 we need to formally uh reconsider as a what kind of uh 734 00:39:15,934 --> 00:39:20,467 reconsider as a what kind of uh uh country bound uh we need. To 735 00:39:20,467 --> 00:39:25,733 uh country bound uh we need. To uh facing uh the global uh 736 00:39:25,733 --> 00:39:28,367 uh facing uh the global uh challenge uh of course, uh now 737 00:39:28,367 --> 00:39:29,967 challenge uh of course, uh now we we really have a have We 738 00:39:29,967 --> 00:39:35,267 we we really have a have We also have AB i’s uh but it’s 739 00:39:35,267 --> 00:39:39,266 also have AB i’s uh but it’s not and I have 740 00:39:39,400 --> 00:39:41,800 uh I think can play a more 741 00:39:41,800 --> 00:39:45,766 uh I think can play a more important to yours but uh 742 00:39:45,766 --> 00:39:47,500 important to yours but uh legitimately uh that’s the 743 00:39:47,500 --> 00:39:52,333 legitimately uh that’s the mandates is not uh uh. 744 00:40:24,300 --> 00:40:28,234 Uh but uh actually when we need 745 00:40:28,234 --> 00:40:32,233 Uh but uh actually when we need a further uh develop some of 746 00:40:32,233 --> 00:40:34,734 a further uh develop some of the necessary functions uh 747 00:40:34,734 --> 00:40:39,167 the necessary functions uh which can uh put the actions uh 748 00:40:39,167 --> 00:40:41,000 which can uh put the actions uh to play uh some kind of results 749 00:40:41,000 --> 00:40:44,366 to play uh some kind of results but anyway, uh I think that 750 00:40:44,366 --> 00:40:49,933 but anyway, uh I think that this is a very very uh uh ideas 751 00:40:49,933 --> 00:40:52,934 this is a very very uh uh ideas uh but I think if uh if uh uh 752 00:40:52,934 --> 00:40:56,500 uh but I think if uh if uh uh today’s topic is to to to talk 753 00:40:56,500 --> 00:40:59,000 today’s topic is to to to talk about. The money through policy 754 00:40:59,000 --> 00:41:01,300 about. The money through policy after the pica, I think this is 755 00:41:01,300 --> 00:41:05,366 after the pica, I think this is one uh one thing you might uh 756 00:41:05,366 --> 00:41:08,800 one uh one thing you might uh something very much for your 757 00:41:08,800 --> 00:41:10,434 something very much for your attention I agree US governor 758 00:41:10,434 --> 00:41:11,933 attention I agree US governor show the many issues to discuss 759 00:41:11,933 --> 00:41:13,634 show the many issues to discuss later today. I’m sure one of 760 00:41:13,634 --> 00:41:15,066 later today. I’m sure one of the most financial stability 761 00:41:15,066 --> 00:41:17,466 the most financial stability aspect, which also Janet 762 00:41:17,466 --> 00:41:19,900 aspect, which also Janet mentioned as a general also 763 00:41:19,900 --> 00:41:22,401 mentioned as a general also said. We have a lot lot from 764 00:41:22,401 --> 00:41:24,899 said. We have a lot lot from Zack and uh I was privileged to 765 00:41:24,899 --> 00:41:26,700 Zack and uh I was privileged to be in the government for many. 766 00:41:26,700 --> 00:41:29,300 be in the government for many. When he was chatting and I was 767 00:41:29,300 --> 00:41:31,733 When he was chatting and I was impressed by his experience and 768 00:41:31,733 --> 00:41:34,666 impressed by his experience and his career as it and also 769 00:41:34,666 --> 00:41:36,200 his career as it and also instincts why I say this word 770 00:41:36,200 --> 00:41:37,400 instincts why I say this word instincts is that there were 771 00:41:37,400 --> 00:41:39,833 instincts is that there were two moments where people saw it 772 00:41:39,833 --> 00:41:42,400 two moments where people saw it very differently and they were 773 00:41:42,400 --> 00:41:46,400 very differently and they were August to 2008, and I went 774 00:41:46,400 --> 00:41:48,467 August to 2008, and I went through what I went through 775 00:41:48,467 --> 00:41:49,767 through what I went through what have the other said about 776 00:41:49,767 --> 00:41:51,200 what have the other said about it and I found a wonderful 777 00:41:51,200 --> 00:41:54,233 it and I found a wonderful piece from team Gartner memoirs 778 00:41:54,233 --> 00:41:55,967 piece from team Gartner memoirs and he talks about Monday 779 00:41:55,967 --> 00:41:59,300 and he talks about Monday fifteenth. September the day 780 00:41:59,300 --> 00:42:04,266 fifteenth. September the day after I quote his book, my 781 00:42:04,266 --> 00:42:05,834 after I quote his book, my Monday morning began with a 782 00:42:05,834 --> 00:42:08,200 Monday morning began with a call from easy biz to say who 783 00:42:08,200 --> 00:42:09,867 call from easy biz to say who had been so complementary about 784 00:42:09,867 --> 00:42:11,934 had been so complementary about our intervention. Now he wants 785 00:42:11,934 --> 00:42:13,900 our intervention. Now he wants to know with the French accent 786 00:42:13,900 --> 00:42:16,467 to know with the French accent blend of punishment and whether 787 00:42:16,467 --> 00:42:18,466 blend of punishment and whether we have lost our minds, How 788 00:42:18,466 --> 00:42:20,700 we have lost our minds, How could we let them go? What 789 00:42:20,700 --> 00:42:21,799 could we let them go? What would we want to create a 790 00:42:21,799 --> 00:42:24,400 would we want to create a global panic? It’s an 791 00:42:24,400 --> 00:42:25,267 global panic? It’s an interesting story because when 792 00:42:25,267 --> 00:42:28,566 interesting story because when we were there. You you you 793 00:42:28,566 --> 00:42:30,600 we were there. You you you failed from Friday night that 794 00:42:30,600 --> 00:42:32,299 failed from Friday night that it’ll be a big, nobody knows 795 00:42:32,299 --> 00:42:34,799 it’ll be a big, nobody knows how big change it was in the 796 00:42:34,799 --> 00:42:36,267 how big change it was in the financial markets in the global 797 00:42:36,267 --> 00:42:38,299 financial markets in the global economy. Thank you very much 798 00:42:38,299 --> 00:42:41,333 economy. Thank you very much for all your work during these 799 00:42:41,333 --> 00:42:44,233 for all your work during these years, Easy BBIS and also in 800 00:42:44,233 --> 00:42:46,466 years, Easy BBIS and also in Brooklyn Floss. Thank you. 801 00:42:46,466 --> 00:42:48,400 Brooklyn Floss. Thank you. Thank you very much indeed. uh 802 00:42:48,400 --> 00:42:50,400 Thank you very much indeed. uh it’s a great pleasure. Have a 803 00:42:50,400 --> 00:42:52,467 it’s a great pleasure. Have a great honor so I would say to 804 00:42:52,467 --> 00:42:54,534 great honor so I would say to be with Janet and the governors 805 00:42:54,534 --> 00:42:59,033 be with Janet and the governors and yourself uh uh in this. 806 00:43:27,333 --> 00:43:29,633 San Francisco in your office of 807 00:43:29,633 --> 00:43:31,733 San Francisco in your office of Chair of the Federal Reserve 808 00:43:31,733 --> 00:43:34,400 Chair of the Federal Reserve there uh I was myself for uh us 809 00:43:34,400 --> 00:43:36,734 there uh I was myself for uh us to deliver a speech in uh in 810 00:43:36,734 --> 00:43:39,266 to deliver a speech in uh in Stanford University. That’s 811 00:43:39,266 --> 00:43:41,700 Stanford University. That’s right. That’s right. I do 812 00:43:41,700 --> 00:43:43,767 right. That’s right. I do remember I so I was wrong that 813 00:43:43,767 --> 00:43:48,733 remember I so I was wrong that we first met in Basel uh it was 814 00:43:48,733 --> 00:43:50,333 we first met in Basel uh it was always an immense pleasure and 815 00:43:50,333 --> 00:43:54,400 always an immense pleasure and of course when the Fed is at 816 00:43:54,400 --> 00:43:57,834 of course when the Fed is at stake of course, your voice is 817 00:43:57,834 --> 00:43:59,967 stake of course, your voice is so important and you listen to 818 00:43:59,967 --> 00:44:03,833 so important and you listen to uh with uh extreme. Wives be 819 00:44:03,833 --> 00:44:08,866 uh with uh extreme. Wives be always a kind and gracious and 820 00:44:08,866 --> 00:44:11,333 always a kind and gracious and so very important memory. 821 00:44:11,333 --> 00:44:15,267 so very important memory. Governor you I remember all our 822 00:44:15,267 --> 00:44:16,867 Governor you I remember all our breakfast in the bathroom in 823 00:44:16,867 --> 00:44:18,200 breakfast in the bathroom in particular, but also everywhere 824 00:44:18,200 --> 00:44:20,800 particular, but also everywhere in the world when you were 825 00:44:20,800 --> 00:44:23,267 in the world when you were asking me what happens in your 826 00:44:23,267 --> 00:44:25,600 asking me what happens in your exactly you can you reassure 827 00:44:25,600 --> 00:44:27,867 exactly you can you reassure me. Will you have food in those 828 00:44:27,867 --> 00:44:30,434 me. Will you have food in those circumstances and uh, of course 829 00:44:30,434 --> 00:44:33,433 circumstances and uh, of course it was indeed very demanding 830 00:44:33,433 --> 00:44:36,867 it was indeed very demanding circumstances uh but uh. We 831 00:44:36,867 --> 00:44:39,367 circumstances uh but uh. We hold it or take it into account 832 00:44:39,367 --> 00:44:42,300 hold it or take it into account uh even if it was a quite 833 00:44:42,300 --> 00:44:43,600 uh even if it was a quite complicated and uh I have to 834 00:44:43,600 --> 00:44:47,267 complicated and uh I have to thank you very much because you 835 00:44:47,267 --> 00:44:48,833 thank you very much because you were absolutely key in the 836 00:44:48,833 --> 00:44:50,633 were absolutely key in the global economy meeting and in 837 00:44:50,633 --> 00:44:53,233 global economy meeting and in all be meeting everybody was 838 00:44:53,233 --> 00:44:55,533 all be meeting everybody was listening to you as they are 839 00:44:55,533 --> 00:44:57,267 listening to you as they are listening to the Fed uh with 840 00:44:57,267 --> 00:45:00,667 listening to the Fed uh with extreme attention and uh we 841 00:45:00,667 --> 00:45:04,966 extreme attention and uh we were always very grateful 842 00:45:04,966 --> 00:45:08,234 were always very grateful because you were always. And 843 00:45:08,234 --> 00:45:09,533 because you were always. And Frank and you express your 844 00:45:09,533 --> 00:45:13,234 Frank and you express your views with uh a kind of 845 00:45:13,234 --> 00:45:16,266 views with uh a kind of dizziness, which was very 846 00:45:16,266 --> 00:45:19,667 dizziness, which was very impressive. uh so the 847 00:45:19,667 --> 00:45:20,500 impressive. uh so the international community has to 848 00:45:20,500 --> 00:45:22,233 international community has to thank you very much for that 849 00:45:22,233 --> 00:45:25,233 thank you very much for that and let me know uh thank you 850 00:45:25,233 --> 00:45:28,400 and let me know uh thank you for his kind world. Uh I was uh 851 00:45:28,400 --> 00:45:32,201 for his kind world. Uh I was uh with in all these difficult 852 00:45:32,201 --> 00:45:34,367 with in all these difficult period with my colleagues from 853 00:45:34,367 --> 00:45:39,567 period with my colleagues from the start of the uh uh. 854 00:46:07,833 --> 00:46:10,367 Succeeded by many others, but 855 00:46:10,367 --> 00:46:12,533 Succeeded by many others, but we avoided the drama and I have 856 00:46:12,533 --> 00:46:15,934 we avoided the drama and I have to thank uh the wisdom of 857 00:46:15,934 --> 00:46:18,267 to thank uh the wisdom of because in the board you have 858 00:46:18,267 --> 00:46:21,401 because in the board you have who is wiser people than others 859 00:46:21,401 --> 00:46:24,533 who is wiser people than others and and uh you you were the 860 00:46:24,533 --> 00:46:26,767 and and uh you you were the wise person and by excell if I 861 00:46:26,767 --> 00:46:32,434 wise person and by excell if I may so let me address the issue 862 00:46:32,434 --> 00:46:34,901 may so let me address the issue at stake, I would say that uh, 863 00:46:34,901 --> 00:46:36,367 at stake, I would say that uh, of course we are it’s very 864 00:46:36,367 --> 00:46:38,733 of course we are it’s very complex uh the the very title 865 00:46:38,733 --> 00:46:43,867 complex uh the the very title of this panel because. 866 00:47:48,234 --> 00:47:53,867 And to cope with this 867 00:47:54,367 --> 00:47:56,234 exotic new situation coming on 868 00:47:56,234 --> 00:47:58,566 exotic new situation coming on top again of all they had to do 869 00:47:58,566 --> 00:48:00,567 top again of all they had to do in the previous 10 years, but 870 00:48:00,567 --> 00:48:04,134 in the previous 10 years, but they demonstrated a capacity to 871 00:48:04,134 --> 00:48:06,400 they demonstrated a capacity to react, which was absolutely 872 00:48:06,400 --> 00:48:07,967 react, which was absolutely remarkable. Speaking for the 873 00:48:07,967 --> 00:48:10,266 remarkable. Speaking for the ECB, I would only mention the 874 00:48:10,266 --> 00:48:11,700 ECB, I would only mention the pandemic emergency purchase 875 00:48:11,700 --> 00:48:15,166 pandemic emergency purchase program of $1 trillion point. 876 00:48:15,166 --> 00:48:17,767 program of $1 trillion point. 1000000000000.35. uh. Rose, 877 00:48:17,767 --> 00:48:20,900 1000000000000.35. uh. Rose, which is absolutely gigantic of 878 00:48:20,900 --> 00:48:23,167 which is absolutely gigantic of course commensurate to the 879 00:48:23,167 --> 00:48:25,667 course commensurate to the problem that the CB had to cope 880 00:48:25,667 --> 00:48:27,267 problem that the CB had to cope with uh I would not see 881 00:48:27,267 --> 00:48:28,767 with uh I would not see mentioned the targeted a TRO 882 00:48:28,767 --> 00:48:30,267 mentioned the targeted a TRO long-term refinancing 883 00:48:30,267 --> 00:48:31,300 long-term refinancing operations, which have been 884 00:48:31,300 --> 00:48:36,266 operations, which have been also extremely impressive. uh 885 00:48:36,266 --> 00:48:38,466 also extremely impressive. uh as regards the uh uh 886 00:48:38,466 --> 00:48:40,267 as regards the uh uh governments. Also, I have to 887 00:48:40,267 --> 00:48:42,200 governments. Also, I have to say that the executive branch 888 00:48:42,200 --> 00:48:45,534 say that the executive branch reacted also very actively 889 00:48:45,534 --> 00:48:50,300 reacted also very actively being. With the crisis and for 890 00:48:50,300 --> 00:48:52,234 being. With the crisis and for the ECB, in particular, which 891 00:48:52,234 --> 00:48:54,666 the ECB, in particular, which had always called governments 892 00:48:54,666 --> 00:48:56,967 had always called governments to step in not to let the on 893 00:48:56,967 --> 00:48:58,400 to step in not to let the on the gaming town to be in the 894 00:48:58,400 --> 00:49:01,801 the gaming town to be in the hands of the ECB, it was very 895 00:49:01,801 --> 00:49:04,933 hands of the ECB, it was very rewarding to see the uh uh 896 00:49:04,933 --> 00:49:07,499 rewarding to see the uh uh initiative which we are taken 897 00:49:07,499 --> 00:49:09,767 initiative which we are taken uh executive branches on the 898 00:49:09,767 --> 00:49:11,299 uh executive branches on the one hand and also by the 899 00:49:11,299 --> 00:49:12,967 one hand and also by the European institutions on the 900 00:49:12,967 --> 00:49:13,967 European institutions on the other hand. And of course, I 901 00:49:13,967 --> 00:49:15,067 other hand. And of course, I will certainly mention the 902 00:49:15,067 --> 00:49:20,700 will certainly mention the next. EU initiative of 903 00:49:20,700 --> 00:49:22,334 next. EU initiative of 750000000000 750000000000 that 904 00:49:22,334 --> 00:49:24,933 750000000000 750000000000 that was not expected before the 905 00:49:24,933 --> 00:49:27,967 was not expected before the pandemic, but proved that the 906 00:49:27,967 --> 00:49:31,633 pandemic, but proved that the your European institutions and 907 00:49:31,633 --> 00:49:34,467 your European institutions and European countries where able 908 00:49:34,467 --> 00:49:39,201 European countries where able to take enormous uh decisions 909 00:49:39,201 --> 00:49:42,200 to take enormous uh decisions even when they were considered 910 00:49:42,200 --> 00:49:44,000 even when they were considered difficult and they were by the 911 00:49:44,000 --> 00:49:45,866 difficult and they were by the way extremely difficult to 912 00:49:45,866 --> 00:49:50,233 way extremely difficult to decide upon. Now uh a world on 913 00:49:50,233 --> 00:49:52,000 decide upon. Now uh a world on so to close on that the 914 00:49:52,000 --> 00:49:54,933 so to close on that the pandemic has found very 915 00:49:54,933 --> 00:49:57,267 pandemic has found very fortunately central banks and 916 00:49:57,267 --> 00:49:59,733 fortunately central banks and governments up to the 917 00:49:59,733 --> 00:50:02,800 governments up to the challenges uh now we have to 918 00:50:02,800 --> 00:50:04,300 challenges uh now we have to accept that at a certain 919 00:50:04,300 --> 00:50:06,200 accept that at a certain moment, the panic will 920 00:50:06,200 --> 00:50:07,967 moment, the panic will disappear and we will have all 921 00:50:07,967 --> 00:50:10,467 disappear and we will have all the problems that the ECB and 922 00:50:10,467 --> 00:50:12,533 the problems that the ECB and the Fed and the Bank of China 923 00:50:12,533 --> 00:50:15,000 the Fed and the Bank of China had in mind before the panic, 924 00:50:15,000 --> 00:50:17,067 had in mind before the panic, namely how to reflect draw the 925 00:50:17,067 --> 00:50:20,366 namely how to reflect draw the lessons. What we have observed 926 00:50:20,366 --> 00:50:22,600 lessons. What we have observed during the past years since the 927 00:50:22,600 --> 00:50:26,000 during the past years since the last crisis, if I met the GFC 928 00:50:26,000 --> 00:50:27,666 last crisis, if I met the GFC and uh what what about uh the 929 00:50:27,666 --> 00:50:30,767 and uh what what about uh the the new strategy of course this 930 00:50:30,767 --> 00:50:32,167 the new strategy of course this new strategy we have to take 931 00:50:32,167 --> 00:50:34,934 new strategy we have to take into account the filling up of 932 00:50:34,934 --> 00:50:36,234 into account the filling up of additional difficulties coming, 933 00:50:36,234 --> 00:50:37,801 additional difficulties coming, which would be the legacy of 934 00:50:37,801 --> 00:50:39,367 which would be the legacy of the pandemic and the legacy of 935 00:50:39,367 --> 00:50:41,933 the pandemic and the legacy of the pen is very heavy, but that 936 00:50:41,933 --> 00:50:44,367 the pen is very heavy, but that being said the problems are 937 00:50:44,367 --> 00:50:45,334 being said the problems are more is the same. and when I 938 00:50:45,334 --> 00:50:49,634 more is the same. and when I look at what the. Reserve just 939 00:50:49,634 --> 00:50:52,800 look at what the. Reserve just decided on Janet was very on 940 00:50:52,800 --> 00:50:55,267 decided on Janet was very on this decision and uh and the 941 00:50:55,267 --> 00:50:57,800 this decision and uh and the other of course, very 942 00:50:57,800 --> 00:50:59,166 other of course, very important. clearly they could 943 00:50:59,166 --> 00:51:00,900 important. clearly they could have been decided even if we 944 00:51:00,900 --> 00:51:03,467 have been decided even if we didn’t have the panic, it is 945 00:51:03,467 --> 00:51:05,733 didn’t have the panic, it is really drawing the lessons from 946 00:51:05,733 --> 00:51:08,900 really drawing the lessons from the last 1015 years since the 947 00:51:08,900 --> 00:51:12,799 the last 1015 years since the great financial crisis so uh I 948 00:51:12,799 --> 00:51:15,233 great financial crisis so uh I will look at it from the angle 949 00:51:15,233 --> 00:51:16,834 will look at it from the angle of vision if I make of your 950 00:51:16,834 --> 00:51:18,334 of vision if I make of your hope in order to come to us 951 00:51:18,334 --> 00:51:21,966 hope in order to come to us with the. 952 00:51:51,834 --> 00:51:53,900 AJ, in New York, I would 953 00:51:53,900 --> 00:51:55,933 AJ, in New York, I would probably say from 1.8 to one 954 00:51:55,933 --> 00:51:58,200 probably say from 1.8 to one because we have a different 955 00:51:58,200 --> 00:52:00,866 because we have a different goal different potential 956 00:52:00,866 --> 00:52:02,234 goal different potential differential between the both 957 00:52:02,234 --> 00:52:06,499 differential between the both sides of the corresponds to uh 958 00:52:06,499 --> 00:52:08,766 sides of the corresponds to uh demographics so a difference of 959 00:52:08,766 --> 00:52:11,400 demographics so a difference of .7 .8 seems to be appropriate 960 00:52:11,400 --> 00:52:12,666 .7 .8 seems to be appropriate interest rates and new neutral 961 00:52:12,666 --> 00:52:14,499 interest rates and new neutral interest-rate equitable really 962 00:52:14,499 --> 00:52:16,967 interest-rate equitable really interest rates divided by two, 963 00:52:16,967 --> 00:52:19,267 interest rates divided by two, I would say the same for your 964 00:52:19,267 --> 00:52:22,399 I would say the same for your of course and uh the issue of 965 00:52:22,399 --> 00:52:24,934 of course and uh the issue of inflation that you mentioned 966 00:52:24,934 --> 00:52:27,367 inflation that you mentioned this flat Philips. And the 967 00:52:27,367 --> 00:52:30,367 this flat Philips. And the absence of inflation even when 968 00:52:30,367 --> 00:52:33,067 absence of inflation even when you have full employment and 969 00:52:33,067 --> 00:52:35,300 you have full employment and you insist on that Janet uh 970 00:52:35,300 --> 00:52:36,800 you insist on that Janet uh very, very much and II agree 971 00:52:36,800 --> 00:52:39,366 very, very much and II agree with that the difference with 972 00:52:39,366 --> 00:52:40,934 with that the difference with your and that is one of the 973 00:52:40,934 --> 00:52:41,900 your and that is one of the problem of Europe is that we 974 00:52:41,900 --> 00:52:44,667 problem of Europe is that we have full employment we have 975 00:52:44,667 --> 00:52:47,201 have full employment we have now not now, but we have full 976 00:52:47,201 --> 00:52:48,933 now not now, but we have full employment in some countries 977 00:52:48,933 --> 00:52:51,967 employment in some countries but not in the US as a whole 978 00:52:51,967 --> 00:52:56,733 but not in the US as a whole and this fact is very. To 979 00:52:56,733 --> 00:52:58,200 and this fact is very. To understand that we have all the 980 00:52:58,200 --> 00:53:00,466 understand that we have all the problems of the United States 981 00:53:00,466 --> 00:53:02,567 problems of the United States if I know of the US, the Fed, 982 00:53:02,567 --> 00:53:03,967 if I know of the US, the Fed, but we have an additional 983 00:53:03,967 --> 00:53:05,733 but we have an additional problem, which is associated 984 00:53:05,733 --> 00:53:09,566 problem, which is associated with the governance of the US, 985 00:53:09,566 --> 00:53:13,100 with the governance of the US, which is uh of a special nature 986 00:53:13,100 --> 00:53:15,299 which is uh of a special nature and uh to make a long story 987 00:53:15,299 --> 00:53:19,166 and uh to make a long story short, I would only say at the 988 00:53:19,166 --> 00:53:21,499 short, I would only say at the certain moment at any moment 989 00:53:21,499 --> 00:53:25,067 certain moment at any moment they are different in 990 00:53:25,067 --> 00:53:25,800 they are different in competitiveness, Customed 991 00:53:25,800 --> 00:53:26,667 competitiveness, Customed overall competitiveness between 992 00:53:26,667 --> 00:53:30,234 overall competitiveness between the values. 993 00:54:01,801 --> 00:54:04,000 The ECB has even more problem 994 00:54:04,000 --> 00:54:06,801 The ECB has even more problem than the US in terms of getting 995 00:54:06,801 --> 00:54:09,167 than the US in terms of getting back to a normal more inflation 996 00:54:09,167 --> 00:54:11,100 back to a normal more inflation because you have that ceiling 997 00:54:11,100 --> 00:54:17,500 because you have that ceiling and Most behaving like the US 998 00:54:17,500 --> 00:54:19,933 and Most behaving like the US and Japan, it puts all the 999 00:54:19,933 --> 00:54:21,500 and Japan, it puts all the others below that I don’t want 1000 00:54:21,500 --> 00:54:23,033 others below that I don’t want to elaborate more on that. but 1001 00:54:23,033 --> 00:54:25,334 to elaborate more on that. but this is a very important point 1002 00:54:25,334 --> 00:54:29,167 this is a very important point now very happy reflection of 1003 00:54:29,167 --> 00:54:31,567 now very happy reflection of meditation on the new concept 1004 00:54:31,567 --> 00:54:34,766 meditation on the new concept of monetary policy strategy if 1005 00:54:34,766 --> 00:54:36,933 of monetary policy strategy if any is decided by the CB, we 1006 00:54:36,933 --> 00:54:39,133 any is decided by the CB, we will see the governing council 1007 00:54:39,133 --> 00:54:41,200 will see the governing council is reflecting on that. it is of 1008 00:54:41,200 --> 00:54:42,200 is reflecting on that. it is of course, extremely important and 1009 00:54:42,200 --> 00:54:44,767 course, extremely important and the fact that uh. It’s been 1010 00:54:44,767 --> 00:54:46,433 the fact that uh. It’s been achieved in the US is of 1011 00:54:46,433 --> 00:54:47,966 achieved in the US is of course, an additional reason to 1012 00:54:47,966 --> 00:54:51,301 course, an additional reason to reflect and meditate I would 1013 00:54:51,301 --> 00:54:53,300 reflect and meditate I would personally say first. I’m very 1014 00:54:53,300 --> 00:54:55,967 personally say first. I’m very happy that the 2% of the US uh 1015 00:54:55,967 --> 00:54:58,467 happy that the 2% of the US uh I don’t II will never forget 1016 00:54:58,467 --> 00:54:59,900 I don’t II will never forget and I considered it was 1017 00:54:59,900 --> 00:55:02,167 and I considered it was something which was the utmost 1018 00:55:02,167 --> 00:55:03,767 something which was the utmost important, even if it was a 1019 00:55:03,767 --> 00:55:07,301 important, even if it was a little bit ignored by academia, 1020 00:55:07,301 --> 00:55:10,500 little bit ignored by academia, namely that the US you have the 1021 00:55:10,500 --> 00:55:14,166 namely that the US you have the not only the CB Bank of England 1022 00:55:14,166 --> 00:55:17,633 not only the CB Bank of England and uh. 1023 00:55:52,266 --> 00:55:53,767 That some of us could say well, 1024 00:55:53,767 --> 00:55:55,667 That some of us could say well, let’s go down to one or let’s 1025 00:55:55,667 --> 00:55:58,767 let’s go down to one or let’s go down to zero. or it’s 1026 00:55:58,767 --> 00:56:01,700 go down to zero. or it’s inflated inflation and go to 1027 00:56:01,700 --> 00:56:03,500 inflated inflation and go to four, which was you know of 1028 00:56:03,500 --> 00:56:06,900 four, which was you know of course suggested by a number of 1029 00:56:06,900 --> 00:56:08,400 course suggested by a number of academics but would have been a 1030 00:56:08,400 --> 00:56:11,233 academics but would have been a big mistake so II am and I 1031 00:56:11,233 --> 00:56:13,834 big mistake so II am and I expect that the ECB will not 1032 00:56:13,834 --> 00:56:16,467 expect that the ECB will not change the the the 2% reference 1033 00:56:16,467 --> 00:56:19,100 change the the the 2% reference if I may now on the medium 1034 00:56:19,100 --> 00:56:22,400 if I may now on the medium long-term concept that has. 1035 00:56:22,400 --> 00:56:24,667 long-term concept that has. Adopted by the US, I would say 1036 00:56:24,667 --> 00:56:26,966 Adopted by the US, I would say that the European are very 1037 00:56:26,966 --> 00:56:30,434 that the European are very close to that already because 1038 00:56:30,434 --> 00:56:31,800 close to that already because the at the very beginning, the 1039 00:56:31,800 --> 00:56:33,267 the at the very beginning, the difference was that the US was 1040 00:56:33,267 --> 00:56:35,100 difference was that the US was more targeting gold inflation 1041 00:56:35,100 --> 00:56:38,234 more targeting gold inflation and we were targeting uh the 1042 00:56:38,234 --> 00:56:39,733 and we were targeting uh the headline inflation we good 1043 00:56:39,733 --> 00:56:41,234 headline inflation we good arguments at this time. Maybe 1044 00:56:41,234 --> 00:56:43,967 arguments at this time. Maybe you can change but that 1045 00:56:43,967 --> 00:56:45,467 you can change but that explains why it was obviously 1046 00:56:45,467 --> 00:56:47,033 explains why it was obviously in our case that you could go 1047 00:56:47,033 --> 00:56:49,401 in our case that you could go up and down up and down and 1048 00:56:49,401 --> 00:56:51,000 up and down up and down and that it was reasonable to have 1049 00:56:51,000 --> 00:56:54,433 that it was reasonable to have some kind of average vision of 1050 00:56:54,433 --> 00:56:56,367 some kind of average vision of the average inflation time, my 1051 00:56:56,367 --> 00:57:01,067 the average inflation time, my said when. To make I would say 1052 00:57:01,067 --> 00:57:03,733 said when. To make I would say as popular as possible, uh the 1053 00:57:03,733 --> 00:57:06,333 as popular as possible, uh the ECB even in Germany, I was 1054 00:57:06,333 --> 00:57:07,966 ECB even in Germany, I was going to grow in and I was 1055 00:57:07,966 --> 00:57:11,034 going to grow in and I was saying I’ve inflation, which 1056 00:57:11,034 --> 00:57:13,267 saying I’ve inflation, which has been delivered by the ECB 1057 00:57:13,267 --> 00:57:15,400 has been delivered by the ECB since the inception of the of 1058 00:57:15,400 --> 00:57:19,967 since the inception of the of your home, is 1.9. 1.95% and it 1059 00:57:19,967 --> 00:57:21,433 your home, is 1.9. 1.95% and it was very proud of that. And for 1060 00:57:21,433 --> 00:57:23,200 was very proud of that. And for me, it was the demonstration 1061 00:57:23,200 --> 00:57:27,800 me, it was the demonstration for we had the uh so I. 1062 00:57:27,800 --> 00:57:30,434 for we had the uh so I. Continuously reacting in terms 1063 00:57:30,434 --> 00:57:32,567 Continuously reacting in terms of a inflation or certain 1064 00:57:32,567 --> 00:57:34,467 of a inflation or certain period of time, of course in 1065 00:57:34,467 --> 00:57:35,800 period of time, of course in our case, it was special 1066 00:57:35,800 --> 00:57:38,667 our case, it was special because the ECB did not exist 1067 00:57:38,667 --> 00:57:40,600 because the ECB did not exist before it’s inception of course 1068 00:57:40,600 --> 00:57:43,866 before it’s inception of course so that I don’t see uh real 1069 00:57:43,866 --> 00:57:46,767 so that I don’t see uh real issue there uh I would say that 1070 00:57:46,767 --> 00:57:48,533 issue there uh I would say that perhaps school inflation should 1071 00:57:48,533 --> 00:57:49,434 perhaps school inflation should be preferred to headline 1072 00:57:49,434 --> 00:57:52,434 be preferred to headline inflation, which would uh which 1073 00:57:52,434 --> 00:57:55,834 inflation, which would uh which will perhaps uh simplify the 1074 00:57:55,834 --> 00:57:57,200 will perhaps uh simplify the vision by academia, in 1075 00:57:57,200 --> 00:57:59,399 vision by academia, in particular on what the ECB 1076 00:57:59,399 --> 00:58:00,967 particular on what the ECB exactly doing confirming that 1077 00:58:00,967 --> 00:58:03,200 exactly doing confirming that going. This is very important, 1078 00:58:03,200 --> 00:58:08,900 going. This is very important, even if it is more or less uh 1079 00:58:09,167 --> 00:58:11,333 uh uh and I have to say that I 1080 00:58:11,333 --> 00:58:14,667 uh uh and I have to say that I don’t expect my myself that we 1081 00:58:14,667 --> 00:58:17,734 don’t expect my myself that we would have other objectives 1082 00:58:17,734 --> 00:58:20,467 would have other objectives then Christ with the 1083 00:58:20,467 --> 00:58:24,500 then Christ with the appropriate qualification and 1084 00:58:24,500 --> 00:58:27,067 appropriate qualification and the treaty says without 1085 00:58:27,067 --> 00:58:29,733 the treaty says without prejudice to price stability. 1086 00:58:29,733 --> 00:58:31,333 prejudice to price stability. BCB must follow all your 1087 00:58:31,333 --> 00:58:33,333 BCB must follow all your objective of the European Union 1088 00:58:33,333 --> 00:58:35,300 objective of the European Union so it seems to me that we have 1089 00:58:35,300 --> 00:58:39,967 so it seems to me that we have already decided that uh uh. 1090 00:59:08,733 --> 00:59:10,234 To a normal situation in terms 1091 00:59:10,234 --> 00:59:12,700 To a normal situation in terms of inflation, which is clearly 1092 00:59:12,700 --> 00:59:15,200 of inflation, which is clearly not necessarily the case very 1093 00:59:15,200 --> 00:59:18,267 not necessarily the case very rapidly and they let me go to 1094 00:59:18,267 --> 00:59:20,000 rapidly and they let me go to the last one I wanted to make 1095 00:59:20,000 --> 00:59:23,234 the last one I wanted to make but risks and in those 1096 00:59:23,234 --> 00:59:25,133 but risks and in those circumstances uh finances has 1097 00:59:25,133 --> 00:59:27,966 circumstances uh finances has been mentioned by and by 1098 00:59:27,966 --> 00:59:30,367 been mentioned by and by Jeanette food agree then it’s 1099 00:59:30,367 --> 00:59:31,967 Jeanette food agree then it’s it’s an enormous problem and if 1100 00:59:31,967 --> 00:59:34,366 it’s an enormous problem and if we continue to be obliged to 1101 00:59:34,366 --> 00:59:35,966 we continue to be obliged to have to accommodate monetary 1102 00:59:35,966 --> 00:59:38,199 have to accommodate monetary policies for a longer period of 1103 00:59:38,199 --> 00:59:40,433 policies for a longer period of time, then, of course, we have 1104 00:59:40,433 --> 00:59:44,800 time, then, of course, we have to have the handling. Of the 1105 00:59:44,800 --> 00:59:47,167 to have the handling. Of the credentials as I would say a 1106 00:59:47,167 --> 00:59:49,866 credentials as I would say a child as possible, uh Janet was 1107 00:59:49,866 --> 00:59:51,467 child as possible, uh Janet was clear on that and clear on the 1108 00:59:51,467 --> 00:59:54,667 clear on that and clear on the fact that maybe we would need 1109 00:59:54,667 --> 00:59:56,933 fact that maybe we would need more by co confidential uh uh I 1110 00:59:56,933 --> 00:59:59,834 more by co confidential uh uh I think that it is true 1111 00:59:59,834 --> 01:00:01,167 think that it is true everywhere. I would say that’s 1112 01:00:01,167 --> 01:00:02,400 everywhere. I would say that’s another element, which is not 1113 01:00:02,400 --> 01:00:04,000 another element, which is not negligible in the non 1114 01:00:04,000 --> 01:00:06,534 negligible in the non conventional weaponry that we 1115 01:00:06,534 --> 01:00:10,200 conventional weaponry that we have the massive purchase of 1116 01:00:10,200 --> 01:00:11,866 have the massive purchase of securities, particularly of 1117 01:00:11,866 --> 01:00:14,500 securities, particularly of treasury is a problem. I cannot 1118 01:00:14,500 --> 01:00:16,667 treasury is a problem. I cannot hide that I am a little bit 1119 01:00:16,667 --> 01:00:18,466 hide that I am a little bit frightened when I look at the 1120 01:00:18,466 --> 01:00:22,301 frightened when I look at the percentage of Treasuries that 1121 01:00:22,301 --> 01:00:23,633 percentage of Treasuries that are in the hands of the Fed or 1122 01:00:23,633 --> 01:00:26,301 are in the hands of the Fed or in the hands of bankrupt Japan, 1123 01:00:26,301 --> 01:00:28,934 in the hands of bankrupt Japan, which represents something like 1124 01:00:28,934 --> 01:00:30,834 which represents something like 45% of the outstanding amount. 1125 01:00:30,834 --> 01:00:32,767 45% of the outstanding amount. It seems to me that we are the 1126 01:00:32,767 --> 01:00:34,599 It seems to me that we are the limit of what would be a 1127 01:00:34,599 --> 01:00:37,367 limit of what would be a reasonable in terms of uh 1128 01:00:37,367 --> 01:00:38,800 reasonable in terms of uh interaction with the 1129 01:00:38,800 --> 01:00:40,633 interaction with the governments interaction with 1130 01:00:40,633 --> 01:00:44,766 governments interaction with the Treasuries and uh also. In 1131 01:00:44,766 --> 01:00:48,367 the Treasuries and uh also. In return perhaps very abnormal, I 1132 01:00:48,367 --> 01:00:51,301 return perhaps very abnormal, I would say functioning of our 1133 01:00:51,301 --> 01:00:53,800 would say functioning of our markets so there we certainly 1134 01:00:53,800 --> 01:00:58,600 markets so there we certainly have to have uh uh a headlight 1135 01:00:58,600 --> 01:01:01,067 have to have uh uh a headlight in the case we are going in the 1136 01:01:01,067 --> 01:01:03,166 in the case we are going in the same direction TLE even we are 1137 01:01:03,166 --> 01:01:04,733 same direction TLE even we are not at forty-five we are in 1138 01:01:04,733 --> 01:01:08,267 not at forty-five we are in between twenty and twenty, but 1139 01:01:08,267 --> 01:01:09,799 between twenty and twenty, but it is something which which 1140 01:01:09,799 --> 01:01:12,400 it is something which which goes up. Cannot go up forever 1141 01:01:12,400 --> 01:01:14,733 goes up. Cannot go up forever there we clearly. Have to 1142 01:01:14,733 --> 01:01:17,466 there we clearly. Have to understand that uh it is one of 1143 01:01:17,466 --> 01:01:21,266 understand that uh it is one of the area where we have uh some 1144 01:01:21,266 --> 01:01:24,833 the area where we have uh some kind of uh early warning now, 1145 01:01:24,833 --> 01:01:27,001 kind of uh early warning now, of course, the main problem we 1146 01:01:27,001 --> 01:01:29,267 of course, the main problem we have as or banks that remains 1147 01:01:29,267 --> 01:01:31,834 have as or banks that remains the fact that the Philips cares 1148 01:01:31,834 --> 01:01:35,000 the fact that the Philips cares is that seems to be flat or 1149 01:01:35,000 --> 01:01:37,533 is that seems to be flat or very profound reason, which are 1150 01:01:37,533 --> 01:01:40,701 very profound reason, which are probably linked to 1151 01:01:40,701 --> 01:01:41,534 probably linked to globalization suddenly linked 1152 01:01:41,534 --> 01:01:45,733 globalization suddenly linked to the bargaining power of. 1153 01:02:13,634 --> 01:02:16,200 Have uniquely because of being 1154 01:02:16,200 --> 01:02:18,634 Have uniquely because of being flat of course I flat whatever 1155 01:02:18,634 --> 01:02:20,800 flat of course I flat whatever the banks will do and are 1156 01:02:20,800 --> 01:02:22,567 the banks will do and are supposed to do in the future. 1157 01:02:22,567 --> 01:02:24,866 supposed to do in the future. We will not get out of our of 1158 01:02:24,866 --> 01:02:28,300 We will not get out of our of the of the trap so it it seems 1159 01:02:28,300 --> 01:02:30,400 the of the trap so it it seems to me that this we should 1160 01:02:30,400 --> 01:02:32,500 to me that this we should reflect much more on what to do 1161 01:02:32,500 --> 01:02:34,234 reflect much more on what to do when we had inflation at that 1162 01:02:34,234 --> 01:02:36,433 when we had inflation at that time, it seems to me that 1163 01:02:36,433 --> 01:02:38,267 time, it seems to me that President Nixon said. Uh I will 1164 01:02:38,267 --> 01:02:40,099 President Nixon said. Uh I will block wages and salaries to 1165 01:02:40,099 --> 01:02:41,434 block wages and salaries to five in English was not the 1166 01:02:41,434 --> 01:02:46,433 five in English was not the best way. Inflation of you but 1167 01:02:46,433 --> 01:02:50,434 best way. Inflation of you but we are in the situations that 1168 01:02:50,434 --> 01:02:52,366 we are in the situations that very interesting and again, 1169 01:02:52,366 --> 01:02:55,733 very interesting and again, it’s has a monetary dimension 1170 01:02:55,733 --> 01:02:57,367 it’s has a monetary dimension of first magnitude it gonna 1171 01:02:57,367 --> 01:02:59,967 of first magnitude it gonna need and I would say social 1172 01:02:59,967 --> 01:03:02,734 need and I would say social political and that I will I 1173 01:03:02,734 --> 01:03:04,533 political and that I will I will stop on that if you’re 1174 01:03:04,533 --> 01:03:08,299 will stop on that if you’re part of it. Thank you very much 1175 01:03:08,299 --> 01:03:09,533 part of it. Thank you very much a lot of questions from the 1176 01:03:09,533 --> 01:03:10,767 a lot of questions from the audience, but can I just come 1177 01:03:10,767 --> 01:03:12,334 audience, but can I just come back to one which you all have 1178 01:03:12,334 --> 01:03:14,767 back to one which you all have mentioned? that’s fine 1179 01:03:14,767 --> 01:03:16,367 mentioned? that’s fine stability because of course, 1180 01:03:16,367 --> 01:03:18,767 stability because of course, low rates for very long and 1181 01:03:18,767 --> 01:03:21,266 low rates for very long and high level of asset based 1182 01:03:21,266 --> 01:03:24,899 high level of asset based programs create a risk. Do we 1183 01:03:24,899 --> 01:03:26,934 programs create a risk. Do we have proper institutions for 1184 01:03:26,934 --> 01:03:29,000 have proper institutions for macro policies at the moment? 1185 01:03:29,000 --> 01:03:31,300 macro policies at the moment? Do they have sufficient tools 1186 01:03:31,300 --> 01:03:32,834 Do they have sufficient tools to that? or is that the area 1187 01:03:32,834 --> 01:03:35,166 to that? or is that the area where more should be done in 1188 01:03:35,166 --> 01:03:39,566 where more should be done in the future? Do you think well? 1189 01:03:39,566 --> 01:03:43,401 the future? Do you think well? I start I start it so I think 1190 01:03:43,401 --> 01:03:46,399 I start I start it so I think it differs across countries My 1191 01:03:46,399 --> 01:03:49,300 it differs across countries My sense is that um in the United 1192 01:03:49,300 --> 01:03:52,801 sense is that um in the United Kingdom uh the financial 1193 01:03:52,801 --> 01:03:56,300 Kingdom uh the financial stability Board has been given 1194 01:03:56,300 --> 01:03:59,634 stability Board has been given powers and tools um, for 1195 01:03:59,634 --> 01:04:02,066 powers and tools um, for example, if there’s a housing 1196 01:04:02,066 --> 01:04:04,800 example, if there’s a housing bubble, they have the ability 1197 01:04:04,800 --> 01:04:08,900 bubble, they have the ability to place caps on. Um loan to 1198 01:04:08,900 --> 01:04:11,866 to place caps on. Um loan to value or debt-to-income ratios 1199 01:04:11,866 --> 01:04:15,866 value or debt-to-income ratios that would uh tamp down uh some 1200 01:04:15,866 --> 01:04:18,567 that would uh tamp down uh some of the bubble dynamics um in 1201 01:04:18,567 --> 01:04:21,800 of the bubble dynamics um in the United States, we have 1202 01:04:21,800 --> 01:04:25,966 the United States, we have virtually no tools of that sort 1203 01:04:25,966 --> 01:04:31,467 virtually no tools of that sort um housing There are now much 1204 01:04:31,467 --> 01:04:34,299 um housing There are now much tighter standards generally 1205 01:04:34,299 --> 01:04:36,033 tighter standards generally that prevents some of the 1206 01:04:36,033 --> 01:04:39,233 that prevents some of the abuses in underwriting. To the 1207 01:04:39,233 --> 01:04:41,234 abuses in underwriting. To the financial crisis, but if we 1208 01:04:41,234 --> 01:04:43,400 financial crisis, but if we thought we saw a house price 1209 01:04:43,400 --> 01:04:45,667 thought we saw a house price bubble um the financial 1210 01:04:45,667 --> 01:04:49,266 bubble um the financial stability Oversight Council uh 1211 01:04:49,266 --> 01:04:51,534 stability Oversight Council uh has no tools uh the bank 1212 01:04:51,534 --> 01:04:53,966 has no tools uh the bank regulators have no tools. um I 1213 01:04:53,966 --> 01:04:57,333 regulators have no tools. um I think concerned more recently 1214 01:04:57,333 --> 01:05:00,200 think concerned more recently uh myself during the time I was 1215 01:05:00,200 --> 01:05:03,000 uh myself during the time I was chair about leveraged lending 1216 01:05:03,000 --> 01:05:05,766 chair about leveraged lending um was worried about a build up 1217 01:05:05,766 --> 01:05:10,434 um was worried about a build up in Non-financial corporate. 1218 01:05:10,434 --> 01:05:11,200 in Non-financial corporate. Which is the start of the 1219 01:05:11,200 --> 01:05:14,133 Which is the start of the pandemic was at the highest 1220 01:05:14,133 --> 01:05:16,799 pandemic was at the highest level in the United States in 1221 01:05:16,799 --> 01:05:21,200 level in the United States in US history. Um we tried to 1222 01:05:21,200 --> 01:05:23,866 US history. Um we tried to constrain um underwriting 1223 01:05:23,866 --> 01:05:26,266 constrain um underwriting practices that which were 1224 01:05:26,266 --> 01:05:28,800 practices that which were deteriorating um over the last 1225 01:05:28,800 --> 01:05:30,500 deteriorating um over the last several years really in the 1226 01:05:30,500 --> 01:05:32,699 several years really in the aftermath of the global 1227 01:05:32,699 --> 01:05:36,000 aftermath of the global financial crisis, Um we put in 1228 01:05:36,000 --> 01:05:38,666 financial crisis, Um we put in place some supervisory guidance 1229 01:05:38,666 --> 01:05:41,233 place some supervisory guidance Congress pushed back. Uh the 1230 01:05:41,233 --> 01:05:44,801 Congress pushed back. Uh the regulators that off I think in 1231 01:05:44,801 --> 01:05:46,334 regulators that off I think in the United States, there is a 1232 01:05:46,334 --> 01:05:49,267 the United States, there is a severe shortage of tools the 1233 01:05:49,267 --> 01:05:52,867 severe shortage of tools the only tools um I see that would 1234 01:05:52,867 --> 01:05:57,266 only tools um I see that would allow real interventions when 1235 01:05:57,266 --> 01:05:59,867 allow real interventions when um problems are building our 1236 01:05:59,867 --> 01:06:02,500 um problems are building our counter cyclical buffer, but 1237 01:06:02,500 --> 01:06:05,200 counter cyclical buffer, but that only applies to the very 1238 01:06:05,200 --> 01:06:08,334 that only applies to the very largest institutions um and our 1239 01:06:08,334 --> 01:06:13,500 largest institutions um and our stress tests. We’re designed to 1240 01:06:13,500 --> 01:06:16,801 stress tests. We’re designed to um essentially have the largest 1241 01:06:16,801 --> 01:06:18,867 um essentially have the largest financial institutions face 1242 01:06:18,867 --> 01:06:20,767 financial institutions face more severe stress and build 1243 01:06:20,767 --> 01:06:22,833 more severe stress and build capital buffers um when times 1244 01:06:22,833 --> 01:06:25,499 capital buffers um when times were good, that could be um run 1245 01:06:25,499 --> 01:06:28,833 were good, that could be um run down later on um recent 1246 01:06:28,833 --> 01:06:30,566 down later on um recent research has suggested that 1247 01:06:30,566 --> 01:06:31,966 research has suggested that really hasn’t worked very well. 1248 01:06:31,966 --> 01:06:34,399 really hasn’t worked very well. so I think it depends on the 1249 01:06:34,399 --> 01:06:35,667 so I think it depends on the country, but I would say in the 1250 01:06:35,667 --> 01:06:39,800 country, but I would say in the United States um the financial. 1251 01:06:39,800 --> 01:06:42,333 United States um the financial. Oversight Council, which was 1252 01:06:42,333 --> 01:06:44,634 Oversight Council, which was created to address financial 1253 01:06:44,634 --> 01:06:46,734 created to address financial stability risks, was given 1254 01:06:46,734 --> 01:06:49,367 stability risks, was given almost no powers. It’s only 1255 01:06:49,367 --> 01:06:53,499 almost no powers. It’s only powers to designate non banking 1256 01:06:53,499 --> 01:06:55,366 powers to designate non banking financial institutions um that 1257 01:06:55,366 --> 01:06:58,834 financial institutions um that are regarded as a risk to 1258 01:06:58,834 --> 01:07:00,267 are regarded as a risk to financial stability and even in 1259 01:07:00,267 --> 01:07:02,767 financial stability and even in there with respect to that 1260 01:07:02,767 --> 01:07:04,600 there with respect to that power, essentially a decision 1261 01:07:04,600 --> 01:07:07,233 power, essentially a decision during the Trump administration 1262 01:07:07,233 --> 01:07:12,066 during the Trump administration has made it to be um. And for 1263 01:07:12,066 --> 01:07:14,833 has made it to be um. And for all practical purposes neutered 1264 01:07:14,833 --> 01:07:16,634 all practical purposes neutered so in the United States, it’s a 1265 01:07:16,634 --> 01:07:19,200 so in the United States, it’s a huge problem. I’m gonna show 1266 01:07:19,200 --> 01:07:24,766 huge problem. I’m gonna show how do you see the situation? 1267 01:07:25,367 --> 01:07:27,767 Okay. Uh yeah. it’s a very good 1268 01:07:27,767 --> 01:07:31,867 Okay. Uh yeah. it’s a very good question uh in China uh we have 1269 01:07:31,867 --> 01:07:33,533 question uh in China uh we have uh probably uh a little bit of 1270 01:07:33,533 --> 01:07:34,867 uh probably uh a little bit of a different situation. There’s 1271 01:07:34,867 --> 01:07:41,434 a different situation. There’s also uh as a man that is uh uh 1272 01:07:41,434 --> 01:07:43,967 also uh as a man that is uh uh we also would like to control 1273 01:07:43,967 --> 01:07:46,866 we also would like to control the inflation uh around the 2% 1274 01:07:46,866 --> 01:07:49,467 the inflation uh around the 2% uh for many in the past uh 1275 01:07:49,467 --> 01:07:54,767 uh for many in the past uh during my time on the. Uh 15 1276 01:07:54,767 --> 01:07:57,833 during my time on the. Uh 15 years uh that’s our inflation 1277 01:07:57,833 --> 01:08:03,901 years uh that’s our inflation targeting uh was uh yeah 1278 01:08:03,901 --> 01:08:04,700 targeting uh was uh yeah sometime higher sometime 1279 01:08:04,700 --> 01:08:08,334 sometime higher sometime sometimes a lower uh or 1280 01:08:08,334 --> 01:08:11,900 sometimes a lower uh or globally and now we have uh uh 1281 01:08:11,900 --> 01:08:14,733 globally and now we have uh uh the problem to reach 2% 1282 01:08:14,733 --> 01:08:18,699 the problem to reach 2% inflation uh and perhaps it may 1283 01:08:18,699 --> 01:08:23,234 inflation uh and perhaps it may sustain for quite a long time. 1284 01:08:23,234 --> 01:08:25,400 sustain for quite a long time. Uh but in China, I think that 1285 01:08:25,400 --> 01:08:30,700 Uh but in China, I think that it’s we still have uh to worry 1286 01:08:30,700 --> 01:08:33,401 it’s we still have uh to worry about uh the inflation going 1287 01:08:33,401 --> 01:08:37,966 about uh the inflation going higher than 2% 3% um the 1288 01:08:37,966 --> 01:08:39,566 higher than 2% 3% um the property because uh it’s a it’s 1289 01:08:39,566 --> 01:08:43,134 property because uh it’s a it’s a market. It’s a characteristic 1290 01:08:43,134 --> 01:08:45,966 a market. It’s a characteristic another is there’s uh we’re 1291 01:08:45,966 --> 01:08:49,266 another is there’s uh we’re always have a lot of money to 1292 01:08:49,266 --> 01:08:53,566 always have a lot of money to over uh a lot of uh a lot of 1293 01:08:53,566 --> 01:08:57,633 over uh a lot of uh a lot of uh. You know it’s uh money 1294 01:08:57,633 --> 01:08:59,467 uh. You know it’s uh money supply growth rate higher than 1295 01:08:59,467 --> 01:09:04,667 supply growth rate higher than the GDP growth rate. Uh so uh 1296 01:09:04,667 --> 01:09:07,634 the GDP growth rate. Uh so uh we don’t uh that much worry 1297 01:09:07,634 --> 01:09:11,333 we don’t uh that much worry about the lamp period. uh low 1298 01:09:11,333 --> 01:09:14,600 about the lamp period. uh low inflation uh but I uh that’s 1299 01:09:14,600 --> 01:09:16,800 inflation uh but I uh that’s the trend that basically the 1300 01:09:16,800 --> 01:09:19,533 the trend that basically the trend uh is quite a parallel to 1301 01:09:19,533 --> 01:09:23,334 trend uh is quite a parallel to the global situation. Uh so uh 1302 01:09:23,334 --> 01:09:26,167 the global situation. Uh so uh I think uh you know our money 1303 01:09:26,167 --> 01:09:28,967 I think uh you know our money part’s makings uh we emphasize 1304 01:09:28,967 --> 01:09:32,533 part’s makings uh we emphasize uh quite much. 1305 01:09:32,767 --> 01:09:35,566 Uh my credential policy but in 1306 01:09:35,566 --> 01:09:37,900 Uh my credential policy but in the beginning of the global 1307 01:09:37,900 --> 01:09:40,899 the beginning of the global financial crisis, uh that uh is 1308 01:09:40,899 --> 01:09:43,401 financial crisis, uh that uh is uh under it was on the eight 1309 01:09:43,401 --> 01:09:48,833 uh under it was on the eight and uh he has a Tucson nine. uh 1310 01:09:48,833 --> 01:09:53,834 and uh he has a Tucson nine. uh we didn’t use the term of a 1311 01:09:53,834 --> 01:09:56,900 we didn’t use the term of a macro part policy. uh what do 1312 01:09:56,900 --> 01:09:59,966 macro part policy. uh what do we see is uh to similar to the 1313 01:09:59,966 --> 01:10:06,300 we see is uh to similar to the counter? And uh the policy to 1314 01:10:06,300 --> 01:10:10,400 counter? And uh the policy to enhance the feedback the 1315 01:10:10,400 --> 01:10:12,900 enhance the feedback the feedback futures of the 1316 01:10:12,900 --> 01:10:13,733 feedback futures of the financial market and the 1317 01:10:13,733 --> 01:10:19,333 financial market and the financial system uh so many 1318 01:10:19,333 --> 01:10:22,433 financial system uh so many things are similar to the uh to 1319 01:10:22,433 --> 01:10:27,334 things are similar to the uh to the uh micro policy um but uh 1320 01:10:27,334 --> 01:10:29,166 the uh micro policy um but uh maybe uh some seems to be 1321 01:10:29,166 --> 01:10:31,800 maybe uh some seems to be younger than that. By December 1322 01:10:31,800 --> 01:10:35,233 younger than that. By December uh in the situation of uh 1323 01:10:35,233 --> 01:10:38,333 uh in the situation of uh inflation uh I said of 1324 01:10:38,333 --> 01:10:42,300 inflation uh I said of initiates the ability uh we uh 1325 01:10:42,300 --> 01:10:47,334 initiates the ability uh we uh reduce uh the positive feedback 1326 01:10:47,334 --> 01:10:51,433 reduce uh the positive feedback uh that uh such as a circuit 1327 01:10:51,433 --> 01:10:55,967 uh that uh such as a circuit breaking uh uh just uh cut off 1328 01:10:55,967 --> 01:10:59,133 breaking uh uh just uh cut off those of uh positive feedback 1329 01:10:59,133 --> 01:11:02,201 those of uh positive feedback uh which may. Create the 1330 01:11:02,201 --> 01:11:03,733 uh which may. Create the Oscillation and for the 1331 01:11:03,733 --> 01:11:06,267 Oscillation and for the financial system uh another is 1332 01:11:06,267 --> 01:11:10,200 financial system uh another is to adjust the crimes of uh 1333 01:11:10,200 --> 01:11:15,301 to adjust the crimes of uh feedback look uh those of the 1334 01:11:15,301 --> 01:11:18,534 feedback look uh those of the uh some of them are similar to 1335 01:11:18,534 --> 01:11:21,800 uh some of them are similar to uh the have the bar for uh some 1336 01:11:21,800 --> 01:11:26,333 uh the have the bar for uh some of uh supervision uh standard 1337 01:11:26,333 --> 01:11:30,267 of uh supervision uh standard uh but uh we can also use some 1338 01:11:30,267 --> 01:11:34,966 uh but uh we can also use some of the incoming perimeters. Try 1339 01:11:34,966 --> 01:11:38,634 of the incoming perimeters. Try to enhance uh the physicality 1340 01:11:38,634 --> 01:11:43,733 to enhance uh the physicality of the of the system. I’m 1341 01:11:43,733 --> 01:11:47,799 of the of the system. I’m talking about uh uh secret uh 1342 01:11:47,799 --> 01:11:54,233 talking about uh uh secret uh yeah we do not uh uh that much 1343 01:11:54,233 --> 01:11:58,234 yeah we do not uh uh that much on the uh the process uh we’re 1344 01:11:58,234 --> 01:12:02,000 on the uh the process uh we’re also uh trying to look more and 1345 01:12:02,000 --> 01:12:08,699 also uh trying to look more and more uh to uh that’s it’s the 1346 01:12:08,699 --> 01:12:10,667 more uh to uh that’s it’s the markets uh especially in China. 1347 01:12:10,667 --> 01:12:14,266 markets uh especially in China. it’s a stock markets uh real 1348 01:12:14,266 --> 01:12:19,034 it’s a stock markets uh real estate market. so I think. 1349 01:12:46,300 --> 01:12:49,600 A lot of a uh but uh when we 1350 01:12:49,600 --> 01:12:51,800 A lot of a uh but uh when we try to use them uh we still 1351 01:12:51,800 --> 01:12:55,233 try to use them uh we still have uh uh uh a lot of a 1352 01:12:55,233 --> 01:12:57,800 have uh uh uh a lot of a problem to coordinate with the 1353 01:12:57,800 --> 01:12:59,733 problem to coordinate with the other departments in the 1354 01:12:59,733 --> 01:13:02,233 other departments in the government and to communicate 1355 01:13:02,233 --> 01:13:05,000 government and to communicate uh with uh at the market 1356 01:13:05,000 --> 01:13:09,733 uh with uh at the market participants uh anyway, there’s 1357 01:13:09,733 --> 01:13:13,367 participants uh anyway, there’s uh we still try to prepare 1358 01:13:13,367 --> 01:13:14,966 uh we still try to prepare either the ways uh to have a 1359 01:13:14,966 --> 01:13:19,233 either the ways uh to have a lantern. Uh low inflation rates 1360 01:13:19,233 --> 01:13:23,866 lantern. Uh low inflation rates uh we may have to do uh the 1361 01:13:23,866 --> 01:13:27,434 uh we may have to do uh the going up the inflation and the 1362 01:13:27,434 --> 01:13:31,867 going up the inflation and the price and the other uh problem, 1363 01:13:31,867 --> 01:13:35,467 price and the other uh problem, which can be reset uh finishing 1364 01:13:35,467 --> 01:13:37,967 which can be reset uh finishing instability. Thank you very 1365 01:13:37,967 --> 01:13:40,167 instability. Thank you very much. how do you see the 1366 01:13:40,167 --> 01:13:41,967 much. how do you see the situation? Well you you know 1367 01:13:41,967 --> 01:13:45,966 situation? Well you you know the situation like that say we 1368 01:13:45,966 --> 01:13:49,833 the situation like that say we it’s less dramatic, perhaps 1369 01:13:49,833 --> 01:13:52,266 it’s less dramatic, perhaps than is the case perhaps in the 1370 01:13:52,266 --> 01:13:53,900 than is the case perhaps in the US, but we are far from what 1371 01:13:53,900 --> 01:13:56,733 US, but we are far from what would be the optimal uh we have 1372 01:13:56,733 --> 01:13:58,467 would be the optimal uh we have the European Systemic Risk 1373 01:13:58,467 --> 01:14:00,767 the European Systemic Risk Board, which was created as one 1374 01:14:00,767 --> 01:14:02,334 Board, which was created as one of the major lesson drawn from 1375 01:14:02,334 --> 01:14:05,533 of the major lesson drawn from the great financial crisis and 1376 01:14:05,533 --> 01:14:09,000 the great financial crisis and I. Take into account it 1377 01:14:09,000 --> 01:14:11,234 I. Take into account it functions it is perfectly able 1378 01:14:11,234 --> 01:14:14,434 functions it is perfectly able to give messages to values 1379 01:14:14,434 --> 01:14:15,966 to give messages to values countries and asking them to 1380 01:14:15,966 --> 01:14:19,400 countries and asking them to activate their counter cyclical 1381 01:14:19,400 --> 01:14:23,367 activate their counter cyclical buffer and uh to uh ask again 1382 01:14:23,367 --> 01:14:23,966 buffer and uh to uh ask again appropriate response in terms 1383 01:14:23,966 --> 01:14:26,567 appropriate response in terms of micro prudential in a number 1384 01:14:26,567 --> 01:14:28,900 of micro prudential in a number of countries so, and of course 1385 01:14:28,900 --> 01:14:32,867 of countries so, and of course in our own framework, a lot of 1386 01:14:32,867 --> 01:14:34,567 in our own framework, a lot of decisions are taken but not a 1387 01:14:34,567 --> 01:14:38,800 decisions are taken but not a level of the Europe. 1388 01:15:08,199 --> 01:15:11,967 Uh I would say. 1389 01:15:12,199 --> 01:15:14,900 Outstanding volume of markets 1390 01:15:14,900 --> 01:15:18,233 Outstanding volume of markets some markets, many markets is 1391 01:15:18,233 --> 01:15:20,600 some markets, many markets is also a really issue and uh I 1392 01:15:20,600 --> 01:15:23,833 also a really issue and uh I don’t know that we are really 1393 01:15:23,833 --> 01:15:26,767 don’t know that we are really able to control that it’s uh 1394 01:15:26,767 --> 01:15:27,967 able to control that it’s uh international community is 1395 01:15:27,967 --> 01:15:31,633 international community is working a lot of that. my 1396 01:15:31,633 --> 01:15:32,533 working a lot of that. my understanding is advise is 1397 01:15:32,533 --> 01:15:34,533 understanding is advise is working a lot of that the 1398 01:15:34,533 --> 01:15:36,266 working a lot of that the financial stability Board uh 1399 01:15:36,266 --> 01:15:39,000 financial stability Board uh working a lot on that, but we 1400 01:15:39,000 --> 01:15:42,600 working a lot on that, but we are far on the. Being the he 1401 01:15:42,600 --> 01:15:46,267 are far on the. Being the he assured and I am myself 1402 01:15:46,267 --> 01:15:47,700 assured and I am myself extremely worried when I look 1403 01:15:47,700 --> 01:15:51,767 extremely worried when I look at the incredible rapidly of 1404 01:15:51,767 --> 01:15:54,233 at the incredible rapidly of the growth of the volume of 1405 01:15:54,233 --> 01:15:56,767 the growth of the volume of this outstanding uh uh and 1406 01:15:56,767 --> 01:16:01,034 this outstanding uh uh and filling up of a non banks non I 1407 01:16:01,034 --> 01:16:02,200 filling up of a non banks non I would say controlled 1408 01:16:02,200 --> 01:16:04,767 would say controlled institutions or regulated 1409 01:16:04,767 --> 01:16:07,000 institutions or regulated institutions like banks like 1410 01:16:07,000 --> 01:16:09,466 institutions like banks like and companies and like pension 1411 01:16:09,466 --> 01:16:12,000 and companies and like pension funds, but all the other area 1412 01:16:12,000 --> 01:16:16,600 funds, but all the other area is to me very dangerous and. 1413 01:16:29,299 --> 01:16:30,934 Thank you very much that many 1414 01:16:30,934 --> 01:16:32,733 Thank you very much that many questions from the audience and 1415 01:16:32,733 --> 01:16:34,533 questions from the audience and two or three of them that’s 1416 01:16:34,533 --> 01:16:35,833 two or three of them that’s actually a central bank 1417 01:16:35,833 --> 01:16:37,533 actually a central bank independence. They ask that if 1418 01:16:37,533 --> 01:16:40,133 independence. They ask that if they’re more tasks than human 1419 01:16:40,133 --> 01:16:42,400 they’re more tasks than human policies for independence like 1420 01:16:42,400 --> 01:16:44,867 policies for independence like macros, but there’ll be more 1421 01:16:44,867 --> 01:16:46,234 macros, but there’ll be more need to coordinate monitor the 1422 01:16:46,234 --> 01:16:47,967 need to coordinate monitor the policies and fiscal policies is 1423 01:16:47,967 --> 01:16:49,266 policies and fiscal policies is the risk that danger 1424 01:16:49,266 --> 01:16:50,833 the risk that danger independence. How do you see 1425 01:16:50,833 --> 01:16:52,866 independence. How do you see the situation about 1426 01:16:52,866 --> 01:16:54,167 the situation about independence today? are there 1427 01:16:54,167 --> 01:16:55,801 independence today? are there risks for advance of central 1428 01:16:55,801 --> 01:17:01,000 risks for advance of central banks hold them before? That’s 1429 01:17:01,000 --> 01:17:03,667 banks hold them before? That’s have a very strong anyhow. 1430 01:17:03,667 --> 01:17:06,834 have a very strong anyhow. Please no uh very rapidly. I 1431 01:17:06,834 --> 01:17:10,901 Please no uh very rapidly. I would only say that if we give 1432 01:17:10,901 --> 01:17:12,334 would only say that if we give too many objectives to the 1433 01:17:12,334 --> 01:17:14,600 too many objectives to the central Bank of course, then 1434 01:17:14,600 --> 01:17:15,400 central Bank of course, then the central bank would be more 1435 01:17:15,400 --> 01:17:18,767 the central bank would be more as the master of organizing the 1436 01:17:18,767 --> 01:17:20,734 as the master of organizing the ya key between the values 1437 01:17:20,734 --> 01:17:23,667 ya key between the values objectives and it seems to me 1438 01:17:23,667 --> 01:17:25,767 objectives and it seems to me that unavoidable it would be 1439 01:17:25,767 --> 01:17:27,166 that unavoidable it would be considered by the political 1440 01:17:27,166 --> 01:17:29,700 considered by the political sphere as something which is. 1441 01:17:29,700 --> 01:17:33,066 sphere as something which is. And then the political sphere 1442 01:17:33,066 --> 01:17:35,201 And then the political sphere could embark on asking the 1443 01:17:35,201 --> 01:17:37,100 could embark on asking the central bank to do this and to 1444 01:17:37,100 --> 01:17:39,233 central bank to do this and to do that. And then, of course we 1445 01:17:39,233 --> 01:17:40,666 do that. And then, of course we are lost. There is no more 1446 01:17:40,666 --> 01:17:42,299 are lost. There is no more independent, so there is a risk 1447 01:17:42,299 --> 01:17:44,733 independent, so there is a risk to enrich too much in my 1448 01:17:44,733 --> 01:17:46,399 to enrich too much in my opinion the objectives of the 1449 01:17:46,399 --> 01:17:48,733 opinion the objectives of the central bank first second, I 1450 01:17:48,733 --> 01:17:50,299 central bank first second, I have to say that the central 1451 01:17:50,299 --> 01:17:53,733 have to say that the central banks of all countries have 1452 01:17:53,733 --> 01:17:57,766 banks of all countries have demonstrated brilliantly that 1453 01:17:57,766 --> 01:18:01,233 demonstrated brilliantly that in case there are problems. So 1454 01:18:01,233 --> 01:18:04,267 in case there are problems. So that I only demanding and uh 1455 01:18:04,267 --> 01:18:06,700 that I only demanding and uh acute on a very short-term 1456 01:18:06,700 --> 01:18:09,400 acute on a very short-term basis they are able to to 1457 01:18:09,400 --> 01:18:11,767 basis they are able to to respond in a way, which has 1458 01:18:11,767 --> 01:18:13,233 respond in a way, which has been as I always say 1459 01:18:13,233 --> 01:18:16,467 been as I always say commensurate with the crisis 1460 01:18:16,467 --> 01:18:18,699 commensurate with the crisis and would not have been 1461 01:18:18,699 --> 01:18:20,700 and would not have been responded by the executive 1462 01:18:20,700 --> 01:18:22,934 responded by the executive branches or by the parliament 1463 01:18:22,934 --> 01:18:26,699 branches or by the parliament and with this and this boldness 1464 01:18:26,699 --> 01:18:29,000 and with this and this boldness so independence generally is 1465 01:18:29,000 --> 01:18:32,234 so independence generally is considered. 1466 01:19:04,800 --> 01:19:06,933 And at the time when the 1467 01:19:06,933 --> 01:19:08,800 And at the time when the central bank already taken a 1468 01:19:08,800 --> 01:19:11,200 central bank already taken a lot of decision, which will uh 1469 01:19:11,200 --> 01:19:12,867 lot of decision, which will uh appropriate, so I think we have 1470 01:19:12,867 --> 01:19:15,767 appropriate, so I think we have a whole case for preserving as 1471 01:19:15,767 --> 01:19:16,866 a whole case for preserving as much as possible independence 1472 01:19:16,866 --> 01:19:19,067 much as possible independence of central bank uh when I look 1473 01:19:19,067 --> 01:19:21,799 of central bank uh when I look at the CB have no doubt BCB is 1474 01:19:21,799 --> 01:19:24,266 at the CB have no doubt BCB is independent Unstop and I have 1475 01:19:24,266 --> 01:19:26,800 independent Unstop and I have to say that uh having seen what 1476 01:19:26,800 --> 01:19:28,733 to say that uh having seen what China did and what Jay has done 1477 01:19:28,733 --> 01:19:31,000 China did and what Jay has done very wisely, you know he’s 1478 01:19:31,000 --> 01:19:32,701 very wisely, you know he’s period as well as been uh it 1479 01:19:32,701 --> 01:19:36,800 period as well as been uh it seems to me that thanks to the. 1480 01:19:36,800 --> 01:19:38,766 seems to me that thanks to the. Of the political system in the 1481 01:19:38,766 --> 01:19:42,367 Of the political system in the US the independence has been 1482 01:19:42,367 --> 01:19:44,800 US the independence has been preserved. Yeah. I mean how do 1483 01:19:44,800 --> 01:19:46,200 preserved. Yeah. I mean how do I mean we all follow of course, 1484 01:19:46,200 --> 01:19:49,634 I mean we all follow of course, make sure discussion. Yeah um 1485 01:19:49,634 --> 01:19:53,201 make sure discussion. Yeah um well, I’d say for a very long 1486 01:19:53,201 --> 01:19:57,200 well, I’d say for a very long time the Fed his head a dual 1487 01:19:57,200 --> 01:19:59,733 time the Fed his head a dual mandate um price stability and 1488 01:19:59,733 --> 01:20:01,867 mandate um price stability and maximum employment rather than 1489 01:20:01,867 --> 01:20:05,133 maximum employment rather than the single mandate and um. um 1490 01:20:05,133 --> 01:20:09,834 the single mandate and um. um most of the. That hasn’t 1491 01:20:09,834 --> 01:20:11,900 most of the. That hasn’t created conflicts when it has 1492 01:20:11,900 --> 01:20:14,200 created conflicts when it has created conflicts the Fed is 1493 01:20:14,200 --> 01:20:19,267 created conflicts the Fed is developed a way to um manage 1494 01:20:19,267 --> 01:20:20,900 developed a way to um manage the trade-offs that exists 1495 01:20:20,900 --> 01:20:23,667 the trade-offs that exists between the two but most of the 1496 01:20:23,667 --> 01:20:27,233 between the two but most of the time those two goals have um 1497 01:20:27,233 --> 01:20:29,633 time those two goals have um been complementary and not 1498 01:20:29,633 --> 01:20:31,800 been complementary and not created conflicts and threats 1499 01:20:31,800 --> 01:20:34,234 created conflicts and threats to independence um in the 1500 01:20:34,234 --> 01:20:35,934 to independence um in the emergency programs when we’ve 1501 01:20:35,934 --> 01:20:39,600 emergency programs when we’ve had financial crisis, including 1502 01:20:39,600 --> 01:20:41,067 had financial crisis, including um after the pandemic that I 1503 01:20:41,067 --> 01:20:44,833 um after the pandemic that I would call. Mere financial 1504 01:20:44,833 --> 01:20:45,966 would call. Mere financial crisis, I believe that would 1505 01:20:45,966 --> 01:20:49,801 crisis, I believe that would have been a financial crisis 1506 01:20:49,801 --> 01:20:52,600 have been a financial crisis except for dramatic Claude 1507 01:20:52,600 --> 01:20:54,367 except for dramatic Claude said, um interventions utterly 1508 01:20:54,367 --> 01:20:56,900 said, um interventions utterly unprecedented um really, in 1509 01:20:56,900 --> 01:21:00,666 unprecedented um really, in order of magnitude um larger 1510 01:21:00,666 --> 01:21:02,133 order of magnitude um larger than the interventions that 1511 01:21:02,133 --> 01:21:07,933 than the interventions that occurred in 2008. um these are 1512 01:21:07,933 --> 01:21:10,400 occurred in 2008. um these are explicitly joints interventions 1513 01:21:10,400 --> 01:21:12,833 explicitly joints interventions um with the Fed and the 1514 01:21:12,833 --> 01:21:16,966 um with the Fed and the Treasury, I think partly. The 1515 01:21:16,966 --> 01:21:20,400 Treasury, I think partly. The Fed is maintained is the Fed 1516 01:21:20,400 --> 01:21:24,700 Fed is maintained is the Fed has a very clear um standard 1517 01:21:24,700 --> 01:21:26,734 has a very clear um standard that it cannot take risk and 1518 01:21:26,734 --> 01:21:28,867 that it cannot take risk and it’s lending any lending that 1519 01:21:28,867 --> 01:21:31,434 it’s lending any lending that it does must be well secured 1520 01:21:31,434 --> 01:21:33,900 it does must be well secured and that means that when it 1521 01:21:33,900 --> 01:21:36,667 and that means that when it sets up facilities that are 1522 01:21:36,667 --> 01:21:40,233 sets up facilities that are supplying credit to main street 1523 01:21:40,233 --> 01:21:43,833 supplying credit to main street firms to large businesses to 1524 01:21:43,833 --> 01:21:46,301 firms to large businesses to municipalities as it’s done. 1525 01:21:46,301 --> 01:21:48,834 municipalities as it’s done. After the financial crisis, 1526 01:21:48,834 --> 01:21:51,800 After the financial crisis, there is explicit taxpayers 1527 01:21:51,800 --> 01:21:54,634 there is explicit taxpayers support um Congress allocated 1528 01:21:54,634 --> 01:21:56,799 support um Congress allocated 400. 450000000000. 1529 01:21:56,799 --> 01:21:58,934 400. 450000000000. $450000000000 for that treasury 1530 01:21:58,934 --> 01:22:02,700 $450000000000 for that treasury approvals required this is 1531 01:22:02,700 --> 01:22:04,833 approvals required this is similar to the way things were 1532 01:22:04,833 --> 01:22:08,900 similar to the way things were structured in 2008 and well. 1533 01:22:08,900 --> 01:22:10,900 structured in 2008 and well. there’s always a threat that 1534 01:22:10,900 --> 01:22:13,200 there’s always a threat that the Fed will be before will be 1535 01:22:13,200 --> 01:22:14,966 the Fed will be before will be leaned on to do more than 1536 01:22:14,966 --> 01:22:18,266 leaned on to do more than they’re. With I think we found 1537 01:22:18,266 --> 01:22:21,299 they’re. With I think we found after 2008 that when the 1538 01:22:21,299 --> 01:22:23,300 after 2008 that when the emergency ended the feds 1539 01:22:23,300 --> 01:22:26,366 emergency ended the feds independence was not compromise 1540 01:22:26,366 --> 01:22:27,900 independence was not compromise and I expect that to be the 1541 01:22:27,900 --> 01:22:31,233 and I expect that to be the case now as well, you know in 1542 01:22:31,233 --> 01:22:33,266 case now as well, you know in macro prudential policy when 1543 01:22:33,266 --> 01:22:35,900 macro prudential policy when you’re talking about imposing 1544 01:22:35,900 --> 01:22:39,266 you’re talking about imposing stricter lending standards. um 1545 01:22:39,266 --> 01:22:42,300 stricter lending standards. um I think that’s a scenario where 1546 01:22:42,300 --> 01:22:44,433 I think that’s a scenario where there’s likely to be more of a 1547 01:22:44,433 --> 01:22:47,700 there’s likely to be more of a threat to independent. If the 1548 01:22:47,700 --> 01:22:50,133 threat to independent. If the central bank is a sign that and 1549 01:22:50,133 --> 01:22:53,799 central bank is a sign that and my own um inclination would be 1550 01:22:53,799 --> 01:22:55,834 my own um inclination would be to have a financial stability 1551 01:22:55,834 --> 01:22:58,433 to have a financial stability board, something like what I 1552 01:22:58,433 --> 01:22:59,900 board, something like what I hope the financial Stability 1553 01:22:59,900 --> 01:23:03,166 hope the financial Stability Oversight Council in the United 1554 01:23:03,166 --> 01:23:05,667 Oversight Council in the United States would be an independent 1555 01:23:05,667 --> 01:23:09,733 States would be an independent entity that as a ??? charge and 1556 01:23:09,733 --> 01:23:11,400 entity that as a ??? charge and um utilizes those tools rather 1557 01:23:11,400 --> 01:23:14,634 um utilizes those tools rather than it being a central bank 1558 01:23:14,634 --> 01:23:18,400 than it being a central bank responsibility. Thank Come on 1559 01:23:18,400 --> 01:23:23,700 responsibility. Thank Come on the uh I think it’s a very 1560 01:23:23,700 --> 01:23:27,699 the uh I think it’s a very interesting question. Uh you 1561 01:23:27,699 --> 01:23:32,467 interesting question. Uh you know I’m on uh the the uh very 1562 01:23:32,467 --> 01:23:35,733 know I’m on uh the the uh very commonly uh we’re always uh 1563 01:23:35,733 --> 01:23:40,500 commonly uh we’re always uh hope uh to develop uh more of 1564 01:23:40,500 --> 01:23:44,533 hope uh to develop uh more of uh of uh the central bank in 1565 01:23:44,533 --> 01:23:48,867 uh of uh the central bank in China. China um to. Estes uh 1566 01:23:48,867 --> 01:23:51,199 China. China um to. Estes uh the political pressure of 1567 01:23:51,199 --> 01:23:53,233 the political pressure of physical operations uh to the 1568 01:23:53,233 --> 01:23:57,000 physical operations uh to the central bank uh, but we also 1569 01:23:57,000 --> 01:23:59,466 central bank uh, but we also realize that so many you want 1570 01:23:59,466 --> 01:24:03,600 realize that so many you want to market uh of central bank 1571 01:24:03,600 --> 01:24:05,799 to market uh of central bank independence. so it’s not uh 1572 01:24:05,799 --> 01:24:09,000 independence. so it’s not uh the BI actually collected a lot 1573 01:24:09,000 --> 01:24:13,000 the BI actually collected a lot of cases study to show that the 1574 01:24:13,000 --> 01:24:14,233 of cases study to show that the different kind of intervention 1575 01:24:14,233 --> 01:24:16,567 different kind of intervention into the central bank 1576 01:24:16,567 --> 01:24:19,867 into the central bank independence. 1577 01:24:21,401 --> 01:24:25,566 Uh so uh I think uh in my mind 1578 01:24:25,566 --> 01:24:27,666 Uh so uh I think uh in my mind uh I would like to emphasize 1579 01:24:27,666 --> 01:24:31,899 uh I would like to emphasize small. It’s uh the central 1580 01:24:31,899 --> 01:24:34,200 small. It’s uh the central bankers should have a more 1581 01:24:34,200 --> 01:24:37,401 bankers should have a more professional spirit uh on the 1582 01:24:37,401 --> 01:24:39,700 professional spirit uh on the the that the mentality should 1583 01:24:39,700 --> 01:24:43,634 the that the mentality should be independent from uh the 1584 01:24:43,634 --> 01:24:45,300 be independent from uh the other government futures so it 1585 01:24:45,300 --> 01:24:50,567 other government futures so it should be different uh and 1586 01:24:51,600 --> 01:24:56,066 Uh this uh professional 1587 01:24:56,066 --> 01:24:58,767 Uh this uh professional mentality and that’s uh you 1588 01:24:58,767 --> 01:25:03,133 mentality and that’s uh you could argue with uh the 1589 01:25:03,133 --> 01:25:06,066 could argue with uh the government and all the other uh 1590 01:25:06,066 --> 01:25:07,867 government and all the other uh whether there’s AB is the 1591 01:25:07,867 --> 01:25:12,233 whether there’s AB is the rights uh the other side right 1592 01:25:12,233 --> 01:25:15,767 rights uh the other side right uh so uh you know that’s so 1593 01:25:15,767 --> 01:25:17,867 uh so uh you know that’s so many of you know market if you 1594 01:25:17,867 --> 01:25:22,267 many of you know market if you look at. Uh the central banks 1595 01:25:22,267 --> 01:25:24,000 look at. Uh the central banks teams uh including governor and 1596 01:25:24,000 --> 01:25:26,699 teams uh including governor and deputy governors uh that’s 1597 01:25:26,699 --> 01:25:29,201 deputy governors uh that’s directors uh you will find out 1598 01:25:29,201 --> 01:25:31,934 directors uh you will find out that uh we still need to 1599 01:25:31,934 --> 01:25:34,367 that uh we still need to transit. uh there’s uh the 1600 01:25:34,367 --> 01:25:36,299 transit. uh there’s uh the professional spirit and the 1601 01:25:36,299 --> 01:25:39,767 professional spirit and the independence of the man. Uh 1602 01:25:39,767 --> 01:25:41,367 independence of the man. Uh I’ll agree with aloud. That’s 1603 01:25:41,367 --> 01:25:45,433 I’ll agree with aloud. That’s uh if you uh would like to 1604 01:25:45,433 --> 01:25:47,966 uh if you uh would like to carry out that objective uh 1605 01:25:47,966 --> 01:25:52,733 carry out that objective uh done. Uh in the reduced uh this 1606 01:25:52,733 --> 01:25:55,666 done. Uh in the reduced uh this uh the central the independents 1607 01:25:55,666 --> 01:25:58,000 uh the central the independents uh I think it’s the same. It’s 1608 01:25:58,000 --> 01:26:02,000 uh I think it’s the same. It’s the panic pure uh there’s uh 1609 01:26:02,000 --> 01:26:05,967 the panic pure uh there’s uh it’s also a cryer uh to uh 1610 01:26:05,967 --> 01:26:07,500 it’s also a cryer uh to uh reduce central banking 1611 01:26:07,500 --> 01:26:09,767 reduce central banking independence and in some 1612 01:26:09,767 --> 01:26:11,533 independence and in some special cases. so it’s I mean 1613 01:26:11,533 --> 01:26:15,500 special cases. so it’s I mean it’s a USAA car, the nutrition 1614 01:26:15,500 --> 01:26:18,333 it’s a USAA car, the nutrition uh there is a lot of talks uh 1615 01:26:18,333 --> 01:26:23,267 uh there is a lot of talks uh which uh. That is the center uh 1616 01:26:23,267 --> 01:26:25,900 which uh. That is the center uh so not only uh mark objective 1617 01:26:25,900 --> 01:26:28,466 so not only uh mark objective of function that there are some 1618 01:26:28,466 --> 01:26:32,334 of function that there are some other reasons. uh it’s uh it’s 1619 01:26:32,334 --> 01:26:36,266 other reasons. uh it’s uh it’s may reduce uh central banks in 1620 01:26:36,266 --> 01:26:40,467 may reduce uh central banks in China. I realization is that uh 1621 01:26:40,467 --> 01:26:44,399 China. I realization is that uh when we talk about uh uh we 1622 01:26:44,399 --> 01:26:47,067 when we talk about uh uh we mainly focus on policy making 1623 01:26:47,067 --> 01:26:49,034 mainly focus on policy making it’s gonna be independent uh 1624 01:26:49,034 --> 01:26:53,800 it’s gonna be independent uh but. Since we have some things 1625 01:26:53,800 --> 01:26:57,333 but. Since we have some things to do with their financial 1626 01:26:57,333 --> 01:26:58,733 to do with their financial stability with the exchange 1627 01:26:58,733 --> 01:27:02,867 stability with the exchange rates so inevitable you need to 1628 01:27:02,867 --> 01:27:04,600 rates so inevitable you need to communicate to the others and 1629 01:27:04,600 --> 01:27:07,266 communicate to the others and the others may say seven since 1630 01:27:07,266 --> 01:27:10,734 the others may say seven since uh which to some extend the 1631 01:27:10,734 --> 01:27:14,933 uh which to some extend the facts that uh that decision 1632 01:27:14,933 --> 01:27:17,467 facts that uh that decision making uh so as as you would 1633 01:27:17,467 --> 01:27:21,334 making uh so as as you would like to say that uh. We’re 1634 01:27:21,334 --> 01:27:23,234 like to say that uh. We’re talking about the abundance we 1635 01:27:23,234 --> 01:27:25,400 talking about the abundance we focus on money through policy 1636 01:27:25,400 --> 01:27:31,666 focus on money through policy uh those of other things uh you 1637 01:27:31,666 --> 01:27:34,366 uh those of other things uh you cannot emphasize that much of 1638 01:27:34,366 --> 01:27:35,766 cannot emphasize that much of uh essential about the 1639 01:27:35,766 --> 01:27:39,367 uh essential about the independence and the uh the 1640 01:27:39,367 --> 01:27:44,133 independence and the uh the most important uh in abundance. 1641 01:27:44,133 --> 01:27:47,867 most important uh in abundance. uh in my mind uh it’s a trying 1642 01:27:47,867 --> 01:27:51,600 uh in my mind uh it’s a trying to uh. 1643 01:27:51,934 --> 01:27:56,733 To uh the pressure of the 1644 01:27:56,733 --> 01:27:57,399 To uh the pressure of the government overspending, that 1645 01:27:57,399 --> 01:27:59,967 government overspending, that means that the physical deficit 1646 01:27:59,967 --> 01:28:02,633 means that the physical deficit uh the budget that is uh 1647 01:28:02,633 --> 01:28:07,700 uh the budget that is uh whether they may use uh the uh 1648 01:28:07,700 --> 01:28:10,667 whether they may use uh the uh some of the pressure uh tow 1649 01:28:10,667 --> 01:28:13,467 some of the pressure uh tow from a uh from the banking 1650 01:28:13,467 --> 01:28:17,967 from a uh from the banking community here actually for the 1651 01:28:17,967 --> 01:28:21,833 community here actually for the uh uh. Facebook It’s and the 1652 01:28:21,833 --> 01:28:26,734 uh uh. Facebook It’s and the government or spending uh so uh 1653 01:28:26,734 --> 01:28:29,034 government or spending uh so uh I think in the coming years 1654 01:28:29,034 --> 01:28:32,766 I think in the coming years this year uh going to uh you 1655 01:28:32,766 --> 01:28:35,367 this year uh going to uh you know there’s uh to try our 1656 01:28:35,367 --> 01:28:40,399 know there’s uh to try our service uh to try our best to 1657 01:28:40,399 --> 01:28:42,799 service uh to try our best to reach out uh to isolate that 1658 01:28:42,799 --> 01:28:47,000 reach out uh to isolate that kind of uh uh pressure to reach 1659 01:28:47,000 --> 01:28:50,600 kind of uh uh pressure to reach at this uh definition of. As 1660 01:28:50,600 --> 01:28:54,267 at this uh definition of. As essential oils, thank you, 1661 01:28:54,267 --> 01:28:55,801 essential oils, thank you, thank you very much. If you 1662 01:28:55,801 --> 01:28:56,699 thank you very much. If you have any questions we are 1663 01:28:56,699 --> 01:28:58,800 have any questions we are running out of time. Can I put 1664 01:28:58,800 --> 01:29:00,033 running out of time. Can I put you one question and that’s 1665 01:29:00,033 --> 01:29:02,133 you one question and that’s actually related to Jackson 1666 01:29:02,133 --> 01:29:03,833 actually related to Jackson Hole Symposium. It’s very 1667 01:29:03,833 --> 01:29:04,933 Hole Symposium. It’s very interesting one because of one 1668 01:29:04,933 --> 01:29:07,400 interesting one because of one of the strategy the one about 1669 01:29:07,400 --> 01:29:08,900 of the strategy the one about communication to people, you 1670 01:29:08,900 --> 01:29:11,733 communication to people, you know, of course, historically 1671 01:29:11,733 --> 01:29:12,667 know, of course, historically we little bit better and 1672 01:29:12,667 --> 01:29:13,767 we little bit better and greenspan he accommodated to 1673 01:29:13,767 --> 01:29:15,833 greenspan he accommodated to markets, He is somebody 1674 01:29:15,833 --> 01:29:18,133 markets, He is somebody understood me, he must be wrong 1675 01:29:18,133 --> 01:29:21,100 understood me, he must be wrong but this emphasis. Moving from 1676 01:29:21,100 --> 01:29:23,367 but this emphasis. Moving from complicated markets and experts 1677 01:29:23,367 --> 01:29:25,399 complicated markets and experts and communicate to people, it 1678 01:29:25,399 --> 01:29:27,234 and communicate to people, it has been a long process. Do you 1679 01:29:27,234 --> 01:29:29,134 has been a long process. Do you feel this kind of major change 1680 01:29:29,134 --> 01:29:34,500 feel this kind of major change in this context today? Um what 1681 01:29:34,500 --> 01:29:36,233 in this context today? Um what do you say you’d be as many 1682 01:29:36,233 --> 01:29:38,300 do you say you’d be as many town halls? Yes? Yes, I mean my 1683 01:29:38,300 --> 01:29:40,900 town halls? Yes? Yes, I mean my view is that it is very 1684 01:29:40,900 --> 01:29:43,301 view is that it is very important to communicate to 1685 01:29:43,301 --> 01:29:45,800 important to communicate to people and not just to 1686 01:29:45,800 --> 01:29:48,300 people and not just to sophisticated player in markets 1687 01:29:48,300 --> 01:29:50,233 sophisticated player in markets although the communications to 1688 01:29:50,233 --> 01:29:52,666 although the communications to markets is important as well 1689 01:29:52,666 --> 01:29:54,467 markets is important as well and that’s part of the central 1690 01:29:54,467 --> 01:29:57,900 and that’s part of the central bank’s transmission mechanism, 1691 01:29:57,900 --> 01:30:00,434 bank’s transmission mechanism, but um what central banks do 1692 01:30:00,434 --> 01:30:02,334 but um what central banks do what they’re trying to achieve 1693 01:30:02,334 --> 01:30:05,167 what they’re trying to achieve is really not at. Will 1694 01:30:05,167 --> 01:30:07,267 is really not at. Will understood among the general 1695 01:30:07,267 --> 01:30:10,300 understood among the general public um when I was chair um 1696 01:30:10,300 --> 01:30:14,566 public um when I was chair um II did my best to uh try to 1697 01:30:14,566 --> 01:30:17,000 II did my best to uh try to talk about what the central 1698 01:30:17,000 --> 01:30:19,266 talk about what the central objectives were that the Fed 1699 01:30:19,266 --> 01:30:21,267 objectives were that the Fed was trying to achieve and to go 1700 01:30:21,267 --> 01:30:24,667 was trying to achieve and to go before abroad set of audience 1701 01:30:24,667 --> 01:30:26,199 before abroad set of audience audiences. Chair Powell was 1702 01:30:26,199 --> 01:30:28,833 audiences. Chair Powell was done um even more than I’ve 1703 01:30:28,833 --> 01:30:31,800 done um even more than I’ve done and I think a purpose um 1704 01:30:31,800 --> 01:30:34,666 done and I think a purpose um of the reviews that just led to 1705 01:30:34,666 --> 01:30:37,367 of the reviews that just led to this change in strategy um 1706 01:30:37,367 --> 01:30:41,366 this change in strategy um there was broad. Outreach to 1707 01:30:41,366 --> 01:30:45,233 there was broad. Outreach to many different members of the 1708 01:30:45,233 --> 01:30:47,066 many different members of the community in the United States 1709 01:30:47,066 --> 01:30:50,167 community in the United States um uh a project called said 1710 01:30:50,167 --> 01:30:54,167 um uh a project called said listens uh meetings around the 1711 01:30:54,167 --> 01:30:57,234 listens uh meetings around the country with um members of 1712 01:30:57,234 --> 01:30:59,667 country with um members of labor community activist 1713 01:30:59,667 --> 01:31:01,267 labor community activist community development and uh 1714 01:31:01,267 --> 01:31:03,966 community development and uh individuals members of the 1715 01:31:03,966 --> 01:31:05,534 individuals members of the business community to listen 1716 01:31:05,534 --> 01:31:07,833 business community to listen and talk about what the Fed was 1717 01:31:07,833 --> 01:31:09,267 and talk about what the Fed was doing and you know even if 1718 01:31:09,267 --> 01:31:11,667 doing and you know even if there’s not a technical 1719 01:31:11,667 --> 01:31:13,966 there’s not a technical understanding of the tools of 1720 01:31:13,966 --> 01:31:17,234 understanding of the tools of monetary policy. Public tested 1721 01:31:17,234 --> 01:31:20,167 monetary policy. Public tested Trust that a central bank is 1722 01:31:20,167 --> 01:31:22,733 Trust that a central bank is not purely pursuing the goals 1723 01:31:22,733 --> 01:31:26,334 not purely pursuing the goals and objectives of the financial 1724 01:31:26,334 --> 01:31:29,233 and objectives of the financial community, but is out to make 1725 01:31:29,233 --> 01:31:31,800 community, but is out to make everyone ordinary citizens on 1726 01:31:31,800 --> 01:31:33,700 everyone ordinary citizens on their lives better off that 1727 01:31:33,700 --> 01:31:36,200 their lives better off that that and that’s critical to 1728 01:31:36,200 --> 01:31:38,400 that and that’s critical to support for a central bank. 1729 01:31:38,400 --> 01:31:40,066 support for a central bank. Thank you Governor show you 1730 01:31:40,066 --> 01:31:43,000 Thank you Governor show you just how high professionalism 1731 01:31:43,000 --> 01:31:44,333 just how high professionalism defenses bankruptcy is 1732 01:31:44,333 --> 01:31:45,633 defenses bankruptcy is important. How you combine this 1733 01:31:45,633 --> 01:31:47,167 important. How you combine this with communicating to people, 1734 01:31:47,167 --> 01:31:48,000 with communicating to people, he said. Part of the 1735 01:31:48,000 --> 01:31:51,333 he said. Part of the professional. 1736 01:31:51,767 --> 01:31:54,901 And I believe uh it’s uh it’s 1737 01:31:54,901 --> 01:31:57,167 And I believe uh it’s uh it’s open. I believe it is uh money 1738 01:31:57,167 --> 01:32:00,266 open. I believe it is uh money center Bank had a lot of the 1739 01:32:00,266 --> 01:32:02,933 center Bank had a lot of the experience uh in the case of uh 1740 01:32:02,933 --> 01:32:06,333 experience uh in the case of uh public communication uh in the 1741 01:32:06,333 --> 01:32:09,500 public communication uh in the case of a press conference uh 1742 01:32:09,500 --> 01:32:12,000 case of a press conference uh and also uh in this country 1743 01:32:12,000 --> 01:32:18,366 and also uh in this country rooms uh that’s uh in my 1744 01:32:18,366 --> 01:32:24,300 rooms uh that’s uh in my memories. it’s uh. Need to uh 1745 01:32:24,300 --> 01:32:26,233 memories. it’s uh. Need to uh make a certain kind of a 1746 01:32:26,233 --> 01:32:30,433 make a certain kind of a balance uh that’s uh one you 1747 01:32:30,433 --> 01:32:32,167 balance uh that’s uh one you talk and you’re trying to talk 1748 01:32:32,167 --> 01:32:37,800 talk and you’re trying to talk with uh public as a need uh 1749 01:32:37,800 --> 01:32:40,434 with uh public as a need uh simultaneously can see uh what 1750 01:32:40,434 --> 01:32:43,334 simultaneously can see uh what would be the response of uh uh 1751 01:32:43,334 --> 01:32:46,300 would be the response of uh uh the government what would be uh 1752 01:32:46,300 --> 01:32:49,800 the government what would be uh that’s uh the civilization of 1753 01:32:49,800 --> 01:32:53,434 that’s uh the civilization of the parliament uh so. You try 1754 01:32:53,434 --> 01:32:57,934 the parliament uh so. You try to not to make the mistake uh 1755 01:32:57,934 --> 01:33:01,267 to not to make the mistake uh why uh the one group uh with a 1756 01:33:01,267 --> 01:33:02,899 why uh the one group uh with a satisfied. uh what do you say 1757 01:33:02,899 --> 01:33:05,201 satisfied. uh what do you say and the other is strongly 1758 01:33:05,201 --> 01:33:09,266 and the other is strongly criticized you and may create 1759 01:33:09,266 --> 01:33:13,234 criticized you and may create the problem for your uh policy 1760 01:33:13,234 --> 01:33:14,867 the problem for your uh policy implementation. uh so uh I 1761 01:33:14,867 --> 01:33:17,267 implementation. uh so uh I think it’s always a complicated 1762 01:33:17,267 --> 01:33:20,400 think it’s always a complicated uh uh but my experience is to 1763 01:33:20,400 --> 01:33:23,967 uh uh but my experience is to say this one you’re try to 1764 01:33:23,967 --> 01:33:27,634 say this one you’re try to guide the inflation uh. 1765 01:33:27,634 --> 01:33:30,733 guide the inflation uh. Expectations uh you mean there 1766 01:33:30,733 --> 01:33:33,267 Expectations uh you mean there is uh the general public you 1767 01:33:33,267 --> 01:33:36,000 is uh the general public you try to expand the money policy 1768 01:33:36,000 --> 01:33:39,867 try to expand the money policy and making things and uh uh try 1769 01:33:39,867 --> 01:33:41,199 and making things and uh uh try to come with the signals for 1770 01:33:41,199 --> 01:33:43,899 to come with the signals for them to understand that uh 1771 01:33:43,899 --> 01:33:45,267 them to understand that uh that’s what is the trend of 1772 01:33:45,267 --> 01:33:47,966 that’s what is the trend of inflation and why the money the 1773 01:33:47,966 --> 01:33:51,867 inflation and why the money the policy uh should go in this way 1774 01:33:51,867 --> 01:33:55,801 policy uh should go in this way or that way to be the invasion 1775 01:33:55,801 --> 01:33:58,400 or that way to be the invasion uh but uh uh the question. 1776 01:33:58,400 --> 01:34:03,966 uh but uh uh the question. Always not to come uh uh only 1777 01:34:03,966 --> 01:34:07,334 Always not to come uh uh only uh about the inflation 1778 01:34:07,334 --> 01:34:08,833 uh about the inflation expectation and a lot of 1779 01:34:08,833 --> 01:34:10,233 expectation and a lot of questions sometime related to 1780 01:34:10,233 --> 01:34:13,000 questions sometime related to the global financial crisis to 1781 01:34:13,000 --> 01:34:14,934 the global financial crisis to financial stability. Uh you can 1782 01:34:14,934 --> 01:34:17,634 financial stability. Uh you can change the use of uh or maybe 1783 01:34:17,634 --> 01:34:20,934 change the use of uh or maybe the payment systems uh so uh 1784 01:34:20,934 --> 01:34:23,201 the payment systems uh so uh what you’ve got this kind of uh 1785 01:34:23,201 --> 01:34:27,433 what you’ve got this kind of uh questions uh you need to know 1786 01:34:27,433 --> 01:34:29,967 questions uh you need to know this such a banker uh the 1787 01:34:29,967 --> 01:34:33,100 this such a banker uh the opinion. 1788 01:34:33,367 --> 01:34:35,234 Uh should we wear it with the 1789 01:34:35,234 --> 01:34:38,367 Uh should we wear it with the uh the government’s use uh the 1790 01:34:38,367 --> 01:34:41,201 uh the government’s use uh the the parliaments uh with uh the 1791 01:34:41,201 --> 01:34:43,801 the parliaments uh with uh the other parts of the department 1792 01:34:43,801 --> 01:34:46,333 other parts of the department uh so they’re actually we try 1793 01:34:46,333 --> 01:34:50,167 uh so they’re actually we try to uh uh make a certain kind of 1794 01:34:50,167 --> 01:34:54,867 to uh uh make a certain kind of trade-off of violence. uh to uh 1795 01:34:54,867 --> 01:34:58,367 trade-off of violence. uh to uh communicate uh together this 1796 01:34:58,367 --> 01:35:02,033 communicate uh together this topic element of parliament the 1797 01:35:02,033 --> 01:35:05,433 topic element of parliament the uh group uh different uh. Are 1798 01:35:05,433 --> 01:35:09,200 uh group uh different uh. Are you interested in growth? uh so 1799 01:35:09,200 --> 01:35:12,266 you interested in growth? uh so uh we need to be careful about 1800 01:35:12,266 --> 01:35:16,200 uh we need to be careful about that uh and uh it’s also a 1801 01:35:16,200 --> 01:35:18,000 that uh and uh it’s also a dynamic. The process is depend 1802 01:35:18,000 --> 01:35:21,400 dynamic. The process is depend on how the central bank 1803 01:35:21,400 --> 01:35:22,600 on how the central bank education and process of going 1804 01:35:22,600 --> 01:35:25,967 education and process of going on if you’re already a put a 1805 01:35:25,967 --> 01:35:32,300 on if you’re already a put a lot of uh uh education and 1806 01:35:32,300 --> 01:35:33,299 lot of uh uh education and knowledge about the financials 1807 01:35:33,299 --> 01:35:38,666 knowledge about the financials of the body. About the better 1808 01:35:38,666 --> 01:35:42,000 of the body. About the better than the creation become easier 1809 01:35:42,000 --> 01:35:45,234 than the creation become easier uh so that’s uh my favorite. 1810 01:35:45,234 --> 01:35:47,467 uh so that’s uh my favorite. Thank you Lord. I give you the 1811 01:35:47,467 --> 01:35:49,133 Thank you Lord. I give you the last the last word here you’ll 1812 01:35:49,133 --> 01:35:52,233 last the last word here you’ll be ECP where there are many 1813 01:35:52,233 --> 01:35:54,699 be ECP where there are many languages and even cultures you 1814 01:35:54,699 --> 01:35:56,666 languages and even cultures you measure one country where 9.95 1815 01:35:56,666 --> 01:35:58,866 measure one country where 9.95 was particularly important. I 1816 01:35:58,866 --> 01:36:00,434 was particularly important. I would you comment in the 1817 01:36:00,434 --> 01:36:01,666 would you comment in the discussion uh first of all I 1818 01:36:01,666 --> 01:36:04,266 discussion uh first of all I would say that uh since the 1819 01:36:04,266 --> 01:36:05,933 would say that uh since the very beginning of the ECB, we 1820 01:36:05,933 --> 01:36:09,067 very beginning of the ECB, we had the concept of the uh press 1821 01:36:09,067 --> 01:36:12,234 had the concept of the uh press conference. 1822 01:36:41,466 --> 01:36:43,800 Because anybody who I’ve spoken 1823 01:36:43,800 --> 01:36:45,834 Because anybody who I’ve spoken in his own language, so I think 1824 01:36:45,834 --> 01:36:48,234 in his own language, so I think we did well to have this press 1825 01:36:48,234 --> 01:36:49,967 we did well to have this press conference this regular monthly 1826 01:36:49,967 --> 01:36:52,433 conference this regular monthly press conference by the way 1827 01:36:52,433 --> 01:36:53,834 press conference by the way they are generalized now 1828 01:36:53,834 --> 01:36:55,933 they are generalized now because they appeared to the 1829 01:36:55,933 --> 01:36:57,367 because they appeared to the appropriate that’s true in 1830 01:36:57,367 --> 01:37:00,000 appropriate that’s true in terms of crisis, so the concept 1831 01:37:00,000 --> 01:37:02,801 terms of crisis, so the concept was a good one of course to 1832 01:37:02,801 --> 01:37:06,801 was a good one of course to speak like that in a single 1833 01:37:06,801 --> 01:37:08,400 speak like that in a single language, which is English 1834 01:37:08,400 --> 01:37:09,700 language, which is English because it’s the language which 1835 01:37:09,700 --> 01:37:12,299 because it’s the language which is used in terms of 1836 01:37:12,299 --> 01:37:14,434 is used in terms of communication, it does not 1837 01:37:14,434 --> 01:37:17,534 communication, it does not equal uh. 1838 01:37:17,834 --> 01:37:20,267 Communication local national 1839 01:37:20,267 --> 01:37:21,233 Communication local national communication the central banks 1840 01:37:21,233 --> 01:37:22,933 communication the central banks the National Central Banks are 1841 01:37:22,933 --> 01:37:24,834 the National Central Banks are supposed to do that in our own 1842 01:37:24,834 --> 01:37:26,967 supposed to do that in our own system they are close to their 1843 01:37:26,967 --> 01:37:29,034 system they are close to their own people by definition and 1844 01:37:29,034 --> 01:37:30,866 own people by definition and they are supposed to speak by 1845 01:37:30,866 --> 01:37:32,333 they are supposed to speak by one voice the voice of the 1846 01:37:32,333 --> 01:37:33,900 one voice the voice of the governing council might be a 1847 01:37:33,900 --> 01:37:35,367 governing council might be a little bit difficult from time 1848 01:37:35,367 --> 01:37:38,766 little bit difficult from time to time, but this is the theory 1849 01:37:38,766 --> 01:37:40,833 to time, but this is the theory now what we experience and 1850 01:37:40,833 --> 01:37:43,433 now what we experience and seems to me a DCB as well, The 1851 01:37:43,433 --> 01:37:48,933 seems to me a DCB as well, The Fed and others and That is to 1852 01:37:48,933 --> 01:37:50,200 Fed and others and That is to be in direct contact with the 1853 01:37:50,200 --> 01:37:52,833 be in direct contact with the population in itself to shop 1854 01:37:52,833 --> 01:37:55,701 population in itself to shop around as ECB as Fed as Bank of 1855 01:37:55,701 --> 01:37:58,800 around as ECB as Fed as Bank of China and that is new to my 1856 01:37:58,800 --> 01:38:00,967 China and that is new to my understanding I would say it’s 1857 01:38:00,967 --> 01:38:02,899 understanding I would say it’s itself has embarked on the two 1858 01:38:02,899 --> 01:38:06,701 itself has embarked on the two three different concept which 1859 01:38:06,701 --> 01:38:09,400 three different concept which is to go on the spot in the 1860 01:38:09,400 --> 01:38:11,233 is to go on the spot in the various companies in the cities 1861 01:38:11,233 --> 01:38:14,000 various companies in the cities and so forth and this concept 1862 01:38:14,000 --> 01:38:19,667 and so forth and this concept of. The institution is or why 1863 01:38:19,667 --> 01:38:21,334 of. The institution is or why listens meaning listens to the 1864 01:38:21,334 --> 01:38:23,699 listens meaning listens to the people itself is something 1865 01:38:23,699 --> 01:38:25,334 people itself is something which I understand is born out 1866 01:38:25,334 --> 01:38:27,467 which I understand is born out of the crisis. It’s very 1867 01:38:27,467 --> 01:38:29,833 of the crisis. It’s very important. Thank you very much 1868 01:38:29,833 --> 01:38:31,499 important. Thank you very much John that I want to thank you. 1869 01:38:31,499 --> 01:38:34,401 John that I want to thank you. Thank you all for this great 1870 01:38:34,401 --> 01:38:35,466 Thank you all for this great great great that Janet you 1871 01:38:35,466 --> 01:38:37,067 great great that Janet you would be able to come and join 1872 01:38:37,067 --> 01:38:39,466 would be able to come and join us at the show. Great to see 1873 01:38:39,466 --> 01:38:41,767 us at the show. Great to see you and all our lord. Thank you 1874 01:38:41,767 --> 01:38:44,300 you and all our lord. Thank you very much for your uh 1875 01:38:44,300 --> 01:38:45,100 very much for your uh inspiration during all these 1876 01:38:45,100 --> 01:38:46,133 inspiration during all these years, he has the support of 1877 01:38:46,133 --> 01:38:48,466 years, he has the support of the group. I’m sure we will see 1878 01:38:48,466 --> 01:38:52,400 the group. I’m sure we will see somewhere so April 30th one for 1879 01:38:52,400 --> 01:38:53,767 somewhere so April 30th one for you, but there will be many 1880 01:38:53,767 --> 01:38:54,367 you, but there will be many places. Yeah. What’s the best 1881 01:38:54,367 --> 01:38:56,634 places. Yeah. What’s the best for you? Thank you very much 1882 01:38:56,634 --> 01:39:01,066 for you? Thank you very much and uh have a nice.