Their effect will soon be exhausted and the increase will stop as pressures from the demand side have been completely absent. Temporarily higher inflation does not mean that price stability is undermined. Over the last two years, inflation in the Euro area has continuously been well above the ECB’s target, but no one gets upset about it, as it is clear that it is not a consequence of overheated domestic demand. Monetary policy cannot prevent the initial impact on prices from the supply shocks, but it can prevent the transmission effect on other prices. NBRM will not allow price stability to be undermined. BIS central bankers’ speeches  1  You have recently admitted that monetary policy is facing several challenges, which call for contrasting reactions. Can you explain what you think specifically and how you would solve this problem in the monetary sphere? If there had not been price shocks of the global commodity exchanges, the NBRM would have had room for further easing of the monetary policy. However, due to the pressures from international prices we must give a clear signal that we will not allow undermining of price stability, while simultaneously adjusting the monetary policy to the slower economic growth. It is a great challenge, a difficult task, but not impossible. Now is the time when many central banks apply unconventional monetary policy measures to respond to the unusual economic trends.
In my view, without pretending to be exhaustive, these global issues on which  Page 6 sur 7 interests and deliverables could converge encompass the following three “Cs”: climate, crypto-assets, cross-border payments. 1. Of course, addressing climate change comes to mind first. In the wake of the IPCC’s January Synthesis Report, it is estimated that if emissions continue at current levels, the carbon budget to have a 50% chance of limiting global warming to 1.5°C with limited overshoot would run out in around six years. The latest IPCC report is the final warning from the scientific climate community to all of us policy makers. From a financial standpoint, the collective priority is to make green finance more mature. The path is clear: better data and better standards will allow us to shift from voluntary to mandatory climate-related disclosures, and still more developed climate stress-tests and transition plans for all financial institutions. At the international level, we must ensure the convergence, or at least the interoperability of the various disclosure standards currently under development. ISSB should be the international standard, and be assured the European standard – EFRAG – will be somewhat more demanding but fully compatible. 2. Second, crypto-assets. In light of last year’s debacle, there is a broad consensus in international fora on the need to regulate them. But this consensus must now be leveraged and translated into concrete action.