the availability of a european safe asset could help banks reduce their excessive holdings of domestic sovereign bonds on their balance sheets. and we have a relevant experiment going on now, which should provide useful information on the pros and cons of a european safe asset. i am referring to the fact that the european commission will issue eur 800 billion worth of euro - denominated bonds in the coming years to finance the european recovery package, nextgenerationeu. the first tranche was very well received by the markets, subscribed by several multiples of the original offer. the funding experience the package could provide useful lessons and guidance for the design of a european safe asset. to conclude, we need to understand ever better both the lessons of covid - 19 and the structural trends in the economy and their impact on financial stability. i would coin the main message of my speech by paraphrasing james carville : “ it ’ s the resilience, smarty! ” – that i. e. resilience should indeed be the critical driver of financial sector polies. as far as the central banks are concerned, the biggest contribution they can make to the society is to deliver on their price stability mandate, which will also contribute to sustainable economic growth and broad - based, inclusive employment growth. i am confident that the outcome of the ecb ’ s monetary policy strategy review will enhance the effectiveness of our monetary policy and the attainment of price stability, and thus also enabling sustainable growth and full employment. thank you for your attention & let me wish you a productive conference! 1 esrb recommendation on intermediate objectives and instruments of macro - prudential policy ( esrb / 2013 / 1 ) 4 / 5 bis central bankers'speeches 2 imf, staff guidance note on macroprudential policy, november 2014. 3 simona malovana, martin hodula, zuzana rakovska, and josef bajzik, 2021, czech national bank survey on macroprudential and monetary policy, summary of the results, june 2021. 5 / 5 bis central bankers'speeches

olli rehn : it ’ s the resilience, smarty! – lessons of the covid - 19 crisis for systemic risk analysis and financial sector policies speech by mr olli rehn, governor of the bank of finland, at a joint conference by risklab at arcada, bank of finland and european systemic risk board, held at bank of finland, helsinki, 1 july 2021. * * * ladies and gentlemen, it is a great pleasure to address such a distinguished audience, even virtually. i indeed hope that next year we can meet in person in finland. recalling the world some lightyears ago, i had the privilege of giving a speech at this same conference in may 2019, about six months before the outbreak of the covid - 19 pandemic. in that speech, i tried to identify major structural economic changes that required a rethink of both monetary policy strategies and macroprudential policies. now, as many parts of the world have passed the worst phases of the pandemic, it is useful to reassess some of the issues i raised two years ago. i will discuss, in the light of the experiences of the covid - 19 crisis, whether the structural changes identified in my speech still remain relevant. i also point out some financial risks and vulnerabilities that policymakers, financial market participants and economic researchers should probably pay more attention to. moreover, i make some preliminary suggestions on how policymakers should adjust their monetary, macroprudential and regulatory policies to foster price stability and financial stability in the postcovid - 19 world. monetary policy let me start with monetary policy. in my speech here in may 2019, i highlighted three longer - term economic developments that challenged the then prevailing monetary policy strategies. first, inflation seemed to have got stuck at a very low level. second, related to low inflation, the equilibrium interest rate had declined to an historically low level. third, the traditional trade - off between economic activity and inflation seemed to have substantially weakened ( or, as economists would put it, the phillips curve seemed to have flattened ). in my speech, i argued that these changes and the ongoing and forthcoming economic and societal transformations caused by climate change, population aging and concerns about inequality all called for a review of the ecb´s monetary policy strategy. last year, the ecb monetary policy strategy review was launched. since then, a lot has happened. covid - 19 and the extraordinary circumstances caused by it have further