public reflecting on recent times – speech by andrew bailey given at the federal reserve bank of kansas 2024 economic symposium, jackson hole, wyoming public published on 23 august 2024 from early 2020, the covid pandemic and then the war in ukraine caused a surge in inflation around the globe. these events, and the nature of policymakers ’ responses to each, have laid bare the challenges and trade - offs inherent in addressing both monetary policy and financial stability shocks. in this speech andrew bailey reflects on recent times and discusses what we can learn in terms of our framework for assessing the extent to which inflation may be persistent, and how various types of shock might be dealt with in the future. speech i want to use my time to look behind the latest state of monetary policy, at issues that have arisen from the experience of recent years, but with some reflections on where we are now. the pandemic caused a sudden, coincident and precipitous fall in global demand and supply – one of these did not obviously lead the other. moreover, in march 2020 we faced monetary policy and financial stability issues arising from the same source, namely the pandemic. taken separately, the responses should be different, with a more exceptional temporary, targeted and typically maximum force intervention better suited to dealing with a financial stability problem. in contrast, a monetary policy response of the sort used in 2020 is typically undertaken over time. but when monetary policy and financial stability issues coincide, the judgement becomes more complicated. by engaging both of the core central bank objectives, the pandemic posed an unusual but not unprecedented challenge. as economies started to adjust to the consequences of the pandemic there was a substantial increase in global demand for goods rather than services, at a time when the supply of goods remained disrupted and restricted. this was an asymmetric demand shock. global goods prices rose as a result, akin to a cost - push shock for open economies like the uk. this was the context of the so - called transitory assessment of monetary policy, namely that such shocks should be short - lived in impact because supply chains should recover and inflation expectations should remain anchored in anticipation of that recovery. that ’ s the theory. the evidence suggests that, taken on its own, the global supply chain shock had run its course by the end of 2022. but a key question at that time was whether and to what extent there would also be catch - up effects in wages and services prices, and over what

jurgen stark : the adoption of the euro – principles, procedures and criteria speech by mr jurgen stark, member of the executive board of the european central bank, at the icelandic chamber of commerce, reykjavik, 13 february 2008. * * * i ladies and gentlemen, it is a great pleasure for me to attend this conference, together with distinguished guests and speakers. in my remarks, i would first like to set out the european union ’ s approach towards the adoption of our single currency, the euro. i will then spell out the eu ’ s and the ecb ’ s stance on unilateral euroisation. i will conclude my remarks with a brief overview of the potential economic costs and benefits of unilateral euroisation. the eu ’ s approach towards the adoption of the single currency the creation of the single currency has been a long and truly historic process. sixty years ago, europe was marred by political disarray and economic disorder. with the treaties of paris and rome, europe ’ s leaders started the construction of a united europe on the ruins of the second world war. since then europe has achieved a lot : • one of the most important achievements is the single market, with the free flow of goods, services, capital and people across national borders. consumers in europe benefit from the larger supply of goods and services. the european companies benefit from the enlarged markets. • another milestone was the creation of the economic and monetary union, at the beginning with 11, then 12 and 13 and 15 members since january this year. o the treaty establishing the european community assigns the european system of central banks the primary objective of maintaining price stability. the ecb has managed to gain and maintain trust of the public and of market participants by delivering price stability. although the single monetary policy faced a number of significant challenges, the ecb managed to stabilise the hicp inflation on average at 2, 1 % from 19992007. this compares with an inflation rate of 3 % in the nine years preceding the emu. o the inflation expectations in the euro area have been anchored in line with the ecb ’ s definition of price stability : below but close to 2 %. this underlines the high reputation the ecb ’ s monetary policy has gained over time. ii given the topic of my speech, the principles, procedures and criteria that govern the adoption of the euro, i would like to underline the key principles for joining the euro area at the very outset : 1. a country must