For this reason, we have adopted a broader-based approach, taking into account all relevant data. We have thus based our monetary policy on two “pillars”. In view of the monetary origins of inflation in the medium term, we have assigned a key role to the monetary aggregate M3, which constitutes the first “pillar” of our monetary policy strategy. This pillar is based on a reference value which we set at 4.5% for the annual growth rate of the broad monetary aggregate M3. This monetary indicator is regarded as being the most compatible with medium-term price stability. Last December, we confirmed this 4.5% growth rate for M3. The concept of a reference value does not imply a commitment on the part of the Eurosystem to automatically correct deviations in monetary growth in the short term. The reference value of M3 is consistent with lasting price stability. Naturally, we also follow the counterparts of M3 closely, that is to say the sources of money creation, and especially lending to the economy and capital flows with the rest of the world. However, trends in monetary aggregates are not in themselves sufficient for assessing the risks to price stability. This is why we need an exhaustive description of the prevailing economic and financial situation. The second pillar of the monetary policy strategy is based on a broad range of variables acting as leading indicators of the outlook for euro area price developments.
Denis Beau: Financial markets - driving innovation and connectivity Opening remarks by Mr Denis Beau, First Deputy Governor of the Bank of France, at the Paris Financial Seminar, co-organised by the Hong Kong Monetary Authority and Paris Europlace, Hong Kong, 16 January 2019. * * * Ladies and Gentlemen, I am very pleased to open this seminar jointly organised by Paris Europlace and the Hong Kong Monetary Authority (HKMA). A new year is usually the time when we regain confidence in the future and in our collective ability to prepare for it. ***  However there are many uncertainties weighing on the global economic outlook. In Europe, there are still many uncertainties about the outcome of Brexit negotiations and the vote over the withdrawal agreement. Caution requires that we all be prepared for a no-deal scenario. Public authorities and most importantly market participants have all prepared serious contingency plans to address and master the cliff-edge risks associated with such a no-deal scenario. As a result, we can expect that those risks will be appropriately managed, without financial stability implications, should such a scenario occur. Outside Europe, global trade tensions are also generating additional uncertainties. Protectionism can indeed be a temptation, but in my view it should not be an option. Let’s be clear: our economies are increasingly integrated, and research conducted at the Banque de France suggests that a rise in protectionism on a large scale (i.e. a generalised trade war scenario) would have a negative impact on global growth.