The fundamental role of central bank money will not diminish. You can see that even the crypto community is betting on the stability of central bank money when it comes to creating stable coins. And many developers of new DLT-based prototypes have asked us to bring central bank money to the ledger.
An exclusive incidence of negative supply shocks would likely have generated disappointing growth outcomes alongside higher inflation. A recent analysis by DNB staff, which decomposes forecast errors of the ECB’s inflation projections since June 2021 into demand and supply shocks, indeed confirms that high inflation has been driven not only by negative supply shocks but to a significant extent also by positive demand shocks.