m., itskhoki, o. and j. konings ( 2014 ), “ importers, exporters and exchange rate disconnect ”, american economic review, 104 ( 7 ) : 1942 – 78, find that larger shares of imported intermediates in production influence the degree of price pass - through from exchange - rate movements. 12 virtual private network. 13 bloom, n., liang, j., roberts, j. and j. zichun ( 2015 ), “ does working from home work? evidence from a chinese experiment ”, quarterly journal of economics, 130 ( 1 ) : 165 – 218 find a 13 % increase in productivity of workers who work from home. 14 international monetary fund ( 2017 ), “ understanding the downward trend in labor income shares ”, imf world economic outlook, april. 15 nairu = non - accelerating inflation rate of unemployment. the nairu refers to a level of unemployment below which inflation rises. 16 for a more detailed discussion of the impact on wages, see haldane, a. ( 2017 ), “ work, wages and monetary policy ”, speech at the national science and media museum, bradford, united kingdom, 20 june. 17 the issues surrounding dbm are discussed in more detail in mersch, y. ( 2017 ), “ digital base money : an assessment from the ecb ’ s perspective ”, speech at the farewell ceremony for pentti hakkarainen, deputy governor of suomen pankki – finlands bank, helsinki, 16 january. 7 / 7 bis central bankers'speeches

luis de guindos : outlook for the euro area economy and financial stability introductory remarks by mr luis de guindos, vice - president of the european central bank, at the 34th edition of " the outlook for the economy and finance ", organised by the european house - ambrosetti, cernobbio, 1 april 2023. * * * financial stability is essential to the ecb's primary objective of price stability. the events of the past few weeks have reminded us of the benefits of strong and harmonised banking regulation and the importance of completing the banking union. we are closely monitoring developments in financial markets and financial institutions. the euro area banking sector is resilient, with strong capital and liquidity positions that are well above the minimum requirements. and banks currently meet a very large portion of the liquidity requirements with the most liquid asset available – reserves held at the central bank. this situation is very different to 2008 and 2009. since then, harmonised european banking supervision has been set up and we have made good progress in implementing the global regulatory reform agenda that was launched in the aftermath of the global financial crisis. but there is no room for complacency. recent events in financial markets have heightened uncertainty, which may hamper the transmission of our monetary policy across the euro area. and we are likely to see a further increase in banks'cost of funding, a tightening of credit standards and a deceleration in the growth of lending volumes. there could also be a drop in consumer and investor confidence and lower overall aggregate demand. however, it is too early to draw conclusions about the impact all of this will have on growth and inflation. the turbulence may well be short - lived, but if amplification effects do emerge, they will show up in the data. in this context of heightened uncertainty, our approach to bringing inflation down to our 2 % medium - term target will remain data - dependent. as we clarified in our latest press conference, our future policy path will be determined by our assessment of the inflation outlook in light of the incoming data, the dynamics of underlying inflation and the strength of monetary policy transmission. we believe that headline inflation is likely to decline considerably this year, while underlying inflation dynamics will remain strong. we came from double - digit monthly inflation in the euro area towards the end of 2022. inflation has been edging downwards, falling to 8. 5 % in february, to 6. 9 % in march ( flash estimate ), and we