a reliable global financial safety net before the next crisis and co - ordinate its different layers. this should include an “ imf standing liquidity facility ”. the global financial safety net is the best insurance we can get against the risks created by economic divergence and it comes at a limited cost. * * let me conclude by quoting voltaire, who wrote in 1770 : “ doubt is an uncomfortable condition, but certainty is a ridiculous one. ” 4 in these times of doubt, we as central bankers should be predictable without being pre - committed – or, as voltaire would say, we should give clarity without pretending to certainty. this is precisely the objective of governing council of the ecb : we are committed to give as much clarity as possible ; clarity, not certainty, which is neither possible nor desirable. thank you for your attention. 1 brainard, w. ( 1967 ), « uncertainty and the effectiveness of policy » the american economic review, vol. 57, no. 2, papers and proceedings of the seventy - ninth annual meeting of the american economic association, may, pp. 411 – 425. 2 blinder, a. ( 1999 ), central banking in theory and practice, the lionel robbins lectures, mit press, cambridge massachusetts. 3 rey, h. ( 2013 ) “ dilemma not trilemma : the global financial cycle and monetary policy independence ”, jackson hole conference proceedings, kansas city fed. 3 / 4 bis central bankers'speeches 4 letter to frederick william, prince of prussia ( 28 november 1770 ). 4 / 4 bis central bankers'speeches

a high level of inflation in recent years, the bank should pay attention to the risk that possible changes in the inflation expectations of households and firms'price - setting behavior may generate second - round effects. as i have explained, the current situation requires the bank to carefully monitor both downside risks to economic growth and upside risks to inflation. furthermore, if the downside risks to the economy turn out to decrease, there is a risk that prolonging the period of accommodative financial conditions will lead to swings in economic activity and prices. the bank continues to carefully assess the future outlook for economic activity and prices, closely considering the likelihood of its projections as well as factors posing upside or downside risks, and will implement its policies in a flexible manner. moreover, since global financial markets are expected to remain unstable and there are various uncertainties in the outlook for economic activity and prices, it is essential for the bank to ensure the stability of the japanese financial markets. closing remarks as i have so far explained, the current state of japan's economy and the world economy pose an extremely difficult situation for the conduct of monetary policy. while monetary policy is expected to contribute to sustainable economic growth by creating a stable financial and economic environment, it cannot by itself increase the potential growth rate of the economy. a prerequisite for the economy to boost its growth potential is a rise in productivity, facilitated by innovation and a continual review of resource allocation. the kansai region is famous for its long history of pioneering entrepreneurship, as demonstrated by the fact that the world's first futures trading was carried out at the dojima rice exchange in osaka during the edo period ( 1603 - 1867 ). in the current environment, i look forward to seeing the region's originality and inventiveness add to the vigor of japan's economy. for our part, we will continue to support your efforts through our conduct of monetary policy. i would like to close my speech by mentioning an early episode in the relationship between the business community of the kansai region and the bank of japan. the bank was established in 1882 with capital of 10 million yen – equivalent to approximately 30 billion yen today. of the contribution to the bank's capital from the private sector, which accounted for half of the total, about 60 percent of the shareholders and 48 percent of the amount came from the kansai region. in other words, the business community of the kansai region contributed significantly to the establishment of japan's