price growth from 1 % to 2 %. i believe the economic analyses and theories ; but i also believe that they only have a real - world impact if they are perceived, accepted and assimilated by common sense and public opinion. this is the focus of the related field of “ behavioural economics ” and the work of the nobel laureate robert schillervi. page 7 of 14 to respect the mandate entrusted to us under the treaties, one thing remains certain : in the face of the too - low level of inflation caused by the cooling of the economy since the end of 2018, it is our duty to maintain an accommodative monetary policy to support economic activity. in september last year, the ecb thus announced a package of measures, the most innovative of which is the reinforcement of its forward guidance which gives visibility as to the future path of short - term rates. however, at our december meeting we noted the first signs of an economic stabilisation, consisting in a relative reduction in trade - related uncertainties. if this stabilisation is confirmed, it would need to be followed by a stabilisation in monetary policy. put another way, the low point observed in growth justifies rates that are “ low for longer ”, but not, at the present time, “ lower for longer ”. ii. low rates : what are the effects? 2. 1 effective policies to support inflation and the economy while these accommodative monetary policies are justified by their causes, are they also effective in terms of their impact? here too, we need to take stock, both on an overall level and for each category of economic agent. from a macroeconomic perspective, low rates and, more broadly, accommodative policies, have indeed lent support to the economy. the imf estimatesvii that without monetary stimulus in advanced economies, world growth would have been 0. 5 percentage point lower in 2019 and 2020 respectively. in the euro area, there have been several convergent estimates as to the impact of monetary policy : viii between 2 and 2. 5 percentage points for growth and a cumulative impact of around 1. 5 percentage point over four years for inflation. page 8 of 14 the effects are similar for france. more growth thanks to low rates also means less unemployment : the euro area has created more than 11 million jobs between 2013 and 2019, of which 2 - 3 million are estimated to stem directly from the effects of monetary policy, based on the latter

##prudential measures. yet we should not overestimate their effectiveness. in my view, monetary policy cannot close its eyes to financial stability, as suggested by those purists who favour a strict “ principle of separation ”. instead, i favour a form of intelligent coordination, and that will be one of the challenges for our next strategic review. monetary policy must remain accommodative but it also has to be more attentive. the necessary follow - up with fiscal and structural policies the second limitation is again a humble truth. as we have seen, monetary policy has gone beyond the call of duty. but it is not – now less than ever – omnipotent, and it cannot perform miracles. monetary policy has no influence page 13 of 14 over the structural changes that are behind the exceptionally low level of the natural interest rate. to fix the euro area ’ s investment dearth – both in the private and public sector – relative to its savings surplus, structural growth policies are needed that boost innovation and productivity. it also means making more appropriate and differentiated use of fiscal policies. in this regard, the euro area is underusing its fiscal space : its public debt ( 84 % ) and deficit ( 0. 9 % ) are lower than those of the united states ( 106 % and 5. 6 % ) or japan ( 238 % and 3 % in 2019 ). source : imf fiscal policy, especially in those european countries with a surplus, needs to be exploited more actively and selectively. germany has opened the debate ; the netherlands have shown the way with the announcement of the creation of an investment fund for the future. low rates, here and elsewhere, can provide an opportunity to finance investments if – and only if – those investments deliver increased potential growth : the ecological transition, digitalisation, education and research. for that, we need – finally! – to focus our fiscal debate on the quality of our spending and investment, and not just on its quantity. at the european level, we have considerable borrowing capacity : we should use it, as soon as we know how to choose these priorities properly, beyond the success of the juncker plan or of investeu. * * page 14 of 14 i shall conclude with a more “ philosophical ” consideration : interest rates are also the price of time. my generation created the euro and tried to tackle the financial crisis. yours is inheriting a world that is equivocal, to say the least : the positive explosion of