which the peso is rigidly pegged, resulted in a further loss of competitiveness in 2000, of about 5 per cent. in europe the growth in exports, investment and sales of consumer durables had brought a sharp acceleration in production and job creation in the middle of 1999. the expansion, which was still strong in the first half of 2000, weakened over the summer. the upturn in inflation diminished households'disposable income. the repercussions of the rise in the price of oil were more severe in italy than elsewhere. the impact on production of the slowdown in consumption was partly offset by an acceleration in investment and a build - up of stocks of finished products. the cyclical indicators for the fourth quarter of 2000 confirm the slowdown in growth in europe and italy compared with the first half of the year. the year - on - year increase in gidp of the euro - area countries in 2000 is estimated to have been 3. 4 per cent, one percentage point more than in 1999. the acceleration was due to the strong growth in world trade and a recovery in market shares. the growth in italian exports continues to lag behind that in world trade. inflation in the euro area averaged 2. 3 per cent in 2000. the core rate, excluding energy and food products, was 1. 3 per cent. in italy the overall rate was 2. 6 per cent and the core rate 2 per cent. the net outflow of private capital from italy and europe for direct and portfolio investment continued ; it was greatest during the summer months. the capital exports of euro - area residents went primarily to the united states, thus helping to finance its substantial external current account deficit. banking systems and financial markets with today's institutional arrangements, the currencies of the leading countries provide the basis for the multiplication of credit in international markets. the stock of money and liquid assets is difficult to control at world level ; its expansion is limited only by the risks and the occurrence of instability in intermediaries or financial systems. in a crisis the costs imposed by the destruction of savings and the contraction of credit, with the economies directly involved bearing the brunt, are much greater than the benefits reaped in the expansionary phase. the use of derivatives has increased the scope for hedging, but it has also multiplied the volume of speculative positions. the increase over the last ten years in the size of intermediaries and their internationalization are a response to the increasingly keen

system will be an important issue for discussion. in this rapidly changing environment, we need to strike the right balance between the private sector ’ s drive for innovation and the role of authorities in safeguarding the public good. the roadmap is also tackling the challenges posed by global stablecoins for regulation, supervision, and payment - system oversight. in this context, steps must be taken to ensure that the regulatory initiatives in some jurisdictions and the revisions envisaged by the standard - setting bodies are consistent with the fsb recommendations and to ascertain whether the latter are still up to date. the g20 will also consider issues related to central bank digital currencies and their possible cross - border use. their development comes with a host of technological, legal and economic issues, which warrant careful examination. central bank digital currencies and global stablecoins are closely interrelated : they share a transactional purpose and may complement or substitute one other. it is therefore important to maintain a holistic view of the payments sector. central banks will proceed carefully and in line with their mandates of price stability and guardians of the currency. * * * let me conclude with a final thought. the iif mission is to support regulatory, financial and economic policies that are, of course, in its members ’ broad interest, but that ultimately 3 / 4 bis central bankers'speeches hinge on global financial stability and economic growth. i have recently emphasised that the contrast between the state and the market is misleading, as they are actually complementary. a healthy economy needs them both : the former provides good rules and high - quality public services, and intervenes in areas where social returns are high but private business is insufficient, and the latter generates dynamic and innovative firms able to promote their work and to be rewarded for the quality of their output. the private sector must continue to be the engine of innovation and job creation, helping not just to exit the pandemic, but also to build toward a more sustainable future, with the key contribution of the financial industry. in the g20 we will continue our endeavours to set the stage for a market that works effectively and efficiently. 4 / 4 bis central bankers'speeches