That is why since inflation started to rise I have been advocating for social partners in Spain to reach an incomes agreement, which shares out the costs between firms and workers so that the loss of real income is evenly distributed among them, with multiyear commitments regarding wage increases and mark-ups. 5/8  BIS - Central bankers' speeches  This general agreement should draw a distinction between the different sectors and agents affected, and avoid indexation mechanisms. It should also be strengthened by eschewing the widespread use of automatic indexation clauses in public spending. Fiscal policy In the current setting, the role of fiscal policy should be different from that played during the pandemic. The measures should now be very selective and focus on lower-income households, who bear the brunt of the increase in inflation, and the firms most vulnerable to the rise in commodity prices. This would avoid an across-theboard fiscal impulse that would exert further pressure on inflation. It should also avoid any significant skewing of price signals, which could provide an incentive for the economy to adapt to the energy shock. Moreover, any measures should be temporary so as not to further increase the structural budget deficit. In this regard, the European Commission has deemed that a significant share of the measures approved in EU Member States are general (rather than targeted) measures that do not take into account the degree of vulnerability of their recipients. It also considers that some of these measures would discourage energy saving.
To make an effective contribution to the development of payments & settlements and also to increase trade and investment flows nationally and regionally, it is necessary to identify the common themes in the form of public policy goals. In this context, the central banks are called upon to take certain minimum actions to further these goals. 6.2 However, the manner and intensity of the current involvement of central banks in payment systems development differ from one country to another. The roots of each central bank’s specific pattern of involvement lie in the different institutional structures and traditions of each country. The central banks may accordingly decide on appropriate action, beyond the minimum, which depends on the national and institutional background. 7. Importance of regional efforts  7.1 By and large, central banks in the SAARC region and elsewhere are currently involved with payment systems in three main ways, namely, in an operational capacity, as payments system overseers, or as catalysts or facilitators of market and regulatory evolution. 7.2 As all central banks are aware, markets may encounter persistent impediments to payment systems development and may become unable to produce efficient and safe services. The existence of such impediments would give rise to policy issues for central  2  BIS Review 35/2008  banks, especially due to their responsibility in achieving the core objectives, such as price stability and financial system stability.