B  The introduction of the euro has increased the homogeneity of European economies and limited the risks of macroeconomic disequilibrium inside the euro area  The convergence process, the homogeneity of European economies and the synchronization of business cycles have increased since the introduction of the euro •  Regarding business cycles, some recent work presented by a working group joining the CEPR (Centre for Economic Policy Research) and the Eurosystem shows that the correlation between business cycles as a whole and also consumption and investment in most euro area countries has increased since 1999. A common European component seems to play a more important role in these economies than the national components do. The  degree of correlation between national cycles and the euro area aggregated cycle varies between 0.70 and 0.92. •  Concerning inflation, the research conducted by the Eurosystem shows that the degree of dispersion of inflation rates inside the euro area is not significantly superior to that observed in the USA, where the federal budget and the much more unified market of goods and services constitute additional room for manoeuvre. The standard error of the annual growth of prices in the 12 euro area countries is in the vicinity of 1.1, compared with 0.8 in the 14 regions of the USA. •  Finally, the updating of the vast work on monetary transmission mechanisms led by the Eurosystem shows that Member States’ economies are more homogeneous as regards the transmission of monetary impulses since the introduction of the euro.

Zeti Akhtar Aziz: Unlocking finance, expanding impact Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Responsible Finance Summit “Unlocking Finance, Expanding Impact”, Sasana Kijang, Kuala Lumpur, 30 March 2016. *  *  *  It is my distinct honour and pleasure to welcome you to Malaysia and to this Responsible Finance Summit for 2016, with the theme "Unlocking Finance, Expanding Impact". The theme gives strong recognition to the essential role of finance in driving sustainable development and growth in the world today. It is now almost a decade since the eruption of the global financial crisis. Despite the challenges, much progress has been made to forge a vision for a stronger post-crisis world. Whilst having to strike a balance between pursuing financial stability and the potential increased costs to financial intermediation, efforts have been made through the global financial reforms towards more sustainable financial systems. This includes the recalibration of financial regulations to curb tendencies for excessive leveraging, strengthened regulatory and supervisory systems that are forward looking and responsive to risk, as well as provisioning standards that reduce procyclicality and that restrain the build-up of risks. In addition, advancing consumer protection, furthering financial education and literacy as well as improving access to financial services have remained important long-term items on the agenda. In tandem with these efforts to strengthen financial stability, the role of finance is also being re-examined to enhance its positive impact.