It is crucial for long-term financial stability that those who make long-run debt commitments are fully aware of this reality and that they plan accordingly. What about inflation risk? Personally, I do not share the view that the current period of central bank activism will be followed by a resurgence of inflation. First, contrary to common assertions, persistent - as opposed to unanticipated - inflation is limited in its capacity to reduce sovereign debt burdens. Second, the low levels of inflation we are currently experiencing are the result of improved monetary policy, combined with a general acknowledgement that inflation does not buy durable economic performance. Neither of these factors are affected by recent events. We can therefore anticipate that, with current or enhanced levels of understanding of monetary mechanisms, and central bankers’ continued preference for price stability, future inflation levels will resemble those of the last 20 years. References Bernanke, Ben S. 2005. The Global Savings Glut and the U.S. Current Account Deficit. Remarks at the Sandridge Lecture, Virginia Association of Economists, Richmond, Virginia. 10 March 2005. Borio, C., and P. Disyatat. 2011. “Global imbalances and the financial crisis: link or no link?” Bank of International Settlements. Working Paper No. 346. May 2011. Gagnon, J., Raskin, M., Remache, J. and Sack, B. 2010. “Large-scale asset purchases by the Federal Reserve: did they work?” Federal Reserve Bank of New York Staff Report No. 441. IMF. 2005. Building Institutions. World Economic Outlook (International Monetary Fund). September 2005. Joyce, Michael, Ana Lasaosa, Ibrahim Stevens and Matthew Tong. 2010.
Political philosopher Thomas Paine said: “If there must be trouble, let it be in my day, that my child may have peace.” Let us hope that beyond Brexit, we will find common grounds to build a desirable future for the next generations. Thank you for your attention. 1 Chair’s summary : G7 finance ministers and central bank governors’ meeting, Chantilly, 17–18 July 2019 2 « Breaking the tragedy of the horizon – climate change and financial stability », Speech by Mark Carney given at  the Lloyd’s of London, 29 September 2015. 3 3/4  BIS central bankers' speeches  3 Source: European Commission 4 F. Villeroy de Galhau (2019), “Climate change: central banks are taking action”, Banque de France, Financial  Stability Review, no. 23 – June 2019. 4/4  BIS central bankers' speeches