After the introduction and the keynote, the conference explores four directions of thought on the topic of monetary unions in history. A panel is devoted to each of them. The first panel will explore the link between monetary unions and economic integration by offering a glimpse in their history. The second session will focus on twentieth century monetary unions following the great and continuous economic stress of the First World War. The third panel will examine monetary unions as facilitating tools for greater customs and economic integration within the Comecon and the Austro-Hungarian Empire. Finally, the last session will address the question to what extent the political relations transcend in the monetary unions as well illustrated by the Great Britain and the member-states of the European Union. This program will break for a discussion between leading academics and policy-makers on the issue of the parallel currencies in history. I would not crowd out the precious conference time by dwelling on each piece of research to be presented and discussed today. Let me pause here, to give way to interesting and open exchange of opinion and deliberations which I believe this conference will stimulate. And once again – welcome to Sofia and enjoy your stay in Bulgaria! Thank you. 2/2  BIS central bankers' speeches
The stronger the upswing in relation to potential output, the greater will be the risk of a faster increase in prices and wages and vice versa. That is why those of us who work in central banks around the world talk so frequently about the cyclical picture even though our target variable is actually inflation. The future value of the krona plays a part in our assessment of inflation. Exchange rate movements affect inflation directly in that they show up in the price of imported goods and services; they also have indirect effects through aggregate demand. Changes in the value of the krona relative to other currencies of importance for foreign trade have consequences for the competitiveness of Swedish goods and services. Turning finally to inflation expectations among households and firms, there is the effect on the actual formation of prices and wages and thereby on inflation. Altered expectations are liable to influence price formation if the Riksbank does not act through monetary policy. There are, however, other price impulses that the Riksbank also has to handle. Examples are last winter’s shortage of snow that restricted the supply of hydroelectric power, cattle diseases that pushed up the price of meat, and the unusually cold weather in Europe that raised the price of fruit and vegetables. Price shocks of this type can occasion large shifts in the general price level at the same time as their impact on inflation is probably only transient.