* * * Mr Chairman, Honourable Members of the Economic and Monetary Affairs Committee, Ladies and gentlemen, It is a pleasure to be back speaking to your committee for the second regular hearing of this year. I am also pleased that you have chosen as the topic for today’s hearing the role of financial innovation.
This is only one element in the broader process of innovation which is taking place in the economy. But it is a decisive one, given the essential role played by financial markets in resource allocation. Before addressing this topic, let me first review the economic outlook and discuss the monetary policy stance.