Among these include the marked increase and changing patterns of international trade, especially with the accession of China in the World Trade Organization; technological innovation; trade and financial market integration; demographic transition; structural reforms in labor and product markets that led to greater competition and lesser price rigidities; and more resilient policy frameworks in some emerging market and developing economies—particularly the successful adoption of inflation targeting as well as the more effective and transparent exchange rate, and monetary and fiscal policy frameworks (World Bank, 2019).3 For central bankers, understanding inflation dynamics in relation to other economic variables is crucial.
the Committee of European Banking Supervisors (CEBS), the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the Committee of European Securities Regulators (CESR), signed last Thursday a joint protocol that aims to foster cooperation and coordination in their tasks of common interest.10 As I already mentioned, the Eurosystem is of the view that the potential of the existing framework should be fully exploited.