to a strong decline in the demand for goods and in output is, however, highly unlikely as long as the swiss franc does not appreciate inordinately. we shall therefore continue to take decisive steps to combat a tightening of the monetary conditions brought about by any significant rise of the swiss franc against the euro. you will certainly have taken note of the high growth rates of the money supply aggregates in the last few quarters. the money supply aggregates are currently growing at rates last seen at the end of the eighties. the question arises to what extent this expansion in the money supply has an inflationary effect. first, let it be said that we are deliberately conducting an expansionary policy. that partly explains the above - average money supply growth. it also must be noted, however, that the painful experiences investors have made on the stock markets and the uncertain economic situation have significantly heightened the preference for liquidity. a look at credit statistics confirms that the money supply did not grow as a result of credit creation and therefore does not serve to finance any existing demand for goods. moreover, our economy currently has free capacities so that increased demand will not immediately push up prices. we are therefore convinced that we have sufficient time at our disposal to keep inflation within the bounds of price stability by tightening monetary policy at a later point in time. i should like to emphasise once more that in the present situation other efforts are needed besides an expansionary monetary policy in order to maintain or to enhance the attractiveness of switzerland as an industrial and business centre. such efforts include a further liberalisation of the domestic economy, an increase in competitiveness in the structurally weak sectors, and sound public finances. adjustment of the monetary policy concept of the ecb a few weeks ago, the european central bank ( ecb ) finalised a monetary policy assessment and slightly adjusted its monetary policy concept. in future, the ecb will no longer lay down the reference value for the money supply m3 every year but will keep it unchanged for longer periods of time. in communicating its monetary policy decisions, the ecb will, other than in the past, first comment the general price and economic development and only afterwards the development of the money supply. furthermore, the ecb has confirmed its definition of price stability. it considers price stability to have been achieved when the inflation rate is below 2 %. at the same time, the ecb has announced that it will now be aiming at an inflation rate of nearly 2 % in the medium term

of the potential customer before granting financing. lastly, official authorities, and supervisors in particular, should promote this responsibility and monitor compliance as a key element in ensuring the stability of the financial system. and nor should they rule out the possibility of taking action if deemed necessary. here i would like to remind you that the banco de espana has opened a public consultation process on the amendment of circular 2 / 2016 on supervision and solvency this very week. the aim is to develop certain aspects of the macroprudential toolkit that legislation has made 1 / 2 bis central bankers'speeches available to the banco de espana. pursuant to this legislation, the banco de espana may set limits and conditions on lending standards and other financial institution transactions, along with sectoral concentration limits. the new circular defines the procedures for activating, deactivating and changing these measures, including the variables and parameters that the banco de espana may take into consideration to adopt a decision, the sectors that may be affected and the contractual terms or ratios that the measures may apply to. i would like to conclude by thanking the general council of economists for this initiative geared to young people, a group that the banco de espana considers a strategic priority in the context of the financial education plan. it is a further example of how the financial education plan partners, in this case the general council of economists, play an essential role in meeting the plan ’ s objectives. we have continued to move resolutely in this direction : through partnership agreements such as those recently signed with the ministry of education and vocational training and the ministry of consumer affairs ; and by pressing ahead with the work avenues opened with the ministry of economic affairs and digital transformation. once again, i would like to congratulate the winners, finalists and participants in this competition and, naturally, the organisers. i encourage them to sustain their efforts to boost the expansion of financial education. thank you very much. 2 / 2 bis central bankers'speeches