implemented and equipped with effective corrective instruments. as part of this, steps must be taken to safeguard the resilience of national adjustments, ensuring that the economy – through its macroeconomic fundamentals – is able to return to a sustainable path following deviations resulting from ( internal and external ) exogenous shocks or erroneous economic policy decisions. this is a particularly important point in the ongoing discussion about the flexibility of fiscal objectives for a given member state. indeed, what truly matters is whether the sustainability plan / path is resilient, in other words, whether its mechanisms can return it to a path complying with the constituent rules, which serve as the basis for the group and its activities. naturally, resilience increases proportionally to the better quality of growth. as such, the sustainability of a given country ’ s financial consolidation and maximum growth are not mutually exclusive. on occasion, means are confused with goals, such as confusing structural reforms, which are a means, with the goal of ensuring potential growth compatible with increased resilience in the economic and financial path of a given economy. structural reforms leading to increased resilience in economies as a response to shocks are those that guarantee : ( i ) employment growth compatible with social cohesion in the long run ; ( ii ) sustainable public finances ; and ( iii ) a response to population developments. a monetary union with sustainability mechanisms favours economic growth, but does not guarantee the aggregate ’ s maximum and sustainable growth. it ensures sustainable public finances, but not a growth path consistent with the natural rate of unemployment, which bis central bankers ’ speeches means that it can coexist with a suboptimal equilibrium. the nature of national economic policies and the coordination of such policies at aggregate level are inextricably linked to the sustainability and quality of the development model for each economy participating in the euro area. therefore, it is crucial to define, put in place and legitimate a power centre that works on the premise that the whole is greater than the sum of its parts. this means that it is necessary to guarantee the set - up and proper functioning of a coordinating power for national economic policies bearing in mind not only the parts but also the path of potential output and employment in the euro area as a whole and, for that purpose, has its own means as well as indirect means to manage aggregate demand, investment and potential output. in the eu institutional framework, this role should be played by the eurogroup. it is responsible for

is of material importance to us. social media has also affected the way we consume news and interact with each other. this medium is playing an increasingly important role in society and influencing macroeconomic and financial outcomes. as an example, corbin fox will present his work with coauthors tomorrow on the effect of social media on the bank runs that took place earlier this year. on the methodological side, machine - learning techniques have also had a profound effect on how we think about modeling complex macroeconomic outcomes. this morning, philippe goulet coulombe will discuss how neural networks help model the volatility of various macroeconomic variables, and joel marbet and yucheng yang will discuss how new methods are being used to solve models with heterogeneous agents, which are crucial to assess the distributional consequences of economic policies. 2 / 3 bis - central bankers'speeches advances in natural language processing and machine learning have also improved our ability to forecast and nowcast a wide range of macroeconomic and financial indicators, a topic that will also be covered in a few sessions tomorrow. in closing, i hope you have many fruitful and informative conversations in this room and during breaks about the usefulness of nontraditional data and new techniques for macroeconomic analysis. i also encourage you to continue your discussions after the conference ends and to seek opportunities for joint work so that we can further develop our understanding of these exciting new tools. welcome to the federal reserve! i hope you enjoy the conference. 1 the views expressed here are my own and not necessarily those of my colleagues on the federal open market committee. 2 see tomaz cajner, laura j. feiveson, christopher j. kurz, and stacey tevlin ( 2022 ), " use of nontraditional data, " in wendy edelberg, louise sheiner, and david wessel, eds., recession remedies : lessons learned from the u. s. economic policy response to covid - 19 ( washington : brookings institution press ), pp. 315 – 46. 3 see lisa d. cook ( 2023 ), " generative ai, productivity, the labor market, and choice behavior, " speech delivered at the national bureau of economic research economics of artificial intelligence conference, toronto, canada, september 22. 3 / 3 bis - central bankers'speeches