the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) stood at 0. 3 % in december, broadly unchanged since the beginning of 2013. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) was – 2. 9 % in december, after – 3. 1 % in november. the january 2014 bank lending survey provides indications of some further stabilisation in credit conditions for firms and households and a smaller net decline in loan demand by enterprises. overall, weak loan dynamics for non - financial corporations continue to reflect their lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non - financial sector balance sheets. since the summer of 2012 substantial progress has been made in improving the funding situation of banks. in order to ensure an adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential that the fragmentation of euro area credit markets declines further and that the resilience of banks is strengthened where needed. this is the objective of the ecb ’ s comprehensive assessment, while the timely implementation of additional steps to establish a banking union will further help to restore confidence in the financial system. to sum up, the economic analysis confirms our expectation of a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below, but close to, 2 % later on. a cross - check with the signals from the monetary analysis confirms the picture of subdued underlying price pressures in the euro area over the medium term. as regards fiscal policies, euro area countries should not unravel past consolidation efforts and should put high government debt on a downward trajectory over the medium term. fiscal strategies should be in line with the stability and growth pact and should ensure a growthfriendly composition of consolidation which combines improving the quality and efficiency of public services with minimising distortionary effects of taxation. when accompanied by the decisive implementation of structural reforms, these strategies will further support the still fragile economic recovery. governments must therefore continue with product and labour market reforms. these reforms will help to enhance the euro area ’ s growth potential and reduce the high unemployment rates in many countries. we are now at your disposal for questions. bis central bankers ’ speeches

lisa d cook : important questions for economic research speech by ms lisa d cook, member of the board of governors of the federal reserve system, at the carroll round keynote speech, georgetown university mcdonough school of business, washington dc, 21 april 2023. * * * good evening. thank you for the invitation to speak at the carroll round this year. 1 economics, like any other discipline, has its own established canon and set of rules and models. but it is also constantly evolving, growing, and changing shape. new approaches and methods are developed. unique forces arise and long - established behaviors can change - - as we have seen over the past three years, and even the past decade. there will always be unasked questions and new trails to blaze. and, as in any field, the people who make up the profession lie at the heart of its growth and progress. it is a pleasure to be here today among such a talented group of future economists. your research reflects everything that is exciting about the discipline. because you have interesting theses. because you have used an impressive variety of data sets and models. and because you have a perspective that is unique to your generation and experiences. as you know, i was a professor of economics and international relations at michigan state university for nearly two decades before joining the board of governors. among my favorite courses to teach were undergraduate research courses. it was magical to see the novel ways that students brought new ideas, literature, models, methods, and data to the most pressing problems of the day. i see some of that magic in the research represented here this evening. in keeping with that spirit of inquiry, i would like to talk today about some of the open questions i see for understanding the economic outlook and for setting monetary policy. i will also focus on some of the data sources i find valuable for answering those questions. inflation for monetary policy, the foremost questions currently are about the inflation process. the pandemic - related economic shutdown created rapid shifts in demand, which continued through the reopening process and reflected people's wants and needs during that time. for instance, there was a sharp move away from in - person services and toward goods. this was coupled with disruptions to supply, both in global supply chains and the labor force. russia's invasion of ukraine last year further restricted access to commodities, and the subsequent surge in energy prices drove a spike in consumer price inflation to a peak in mid - 2022,