Within the space of the next 20 minutes, I will try to lay down the foundations for this jigsaw by giving you an overview of the global economic situation. I will also be elaborating on the consequences that this has for monetary policy and for banking supervision in the euro area. 2.
As I just mentioned, inflation dynamics may change in the future, and such uncertainty is another crucial point that should be taken into consideration in the conduct of monetary policy. Specifically, no one knows whether the flattened Phillips curve will be a lasting phenomenon.