and economies, through increased cross - border risk sharing. a number of factors are required to create successful and well - functioning capital markets, which the objectives of the recent cmu action plan seeks to address : 2 1. support a green, digital, inclusive and resilient economic recovery by making financing more accessible to european companies ; 2. make the eu an even safer place for individuals to save and invest long - term ; and, 3. integrate national capital markets into a genuine single market. in an increasingly globalised economy, access and connectedness to global markets, and a lack of fragmentation is more efficient than multiple, closed capital market systems. 1 / 2 bis central bankers'speeches of course, we must ensure that progress towards deeper integration of capital markets in europe is accompanied by policies to ensure resilience in the financial system. the covid - 19 shock last year underscored some vulnerabilities in the market - based finance sector in several jurisdictions. policymakers must ensure the level of resilience in market - based finance is commensurate with its contribution to systemic risk and how it interacts with the financial system and the economy as a whole. to meet this goal, the central bank of ireland has been one of several public bodies calling for a macroprudential framework for market - based finance and we will continue to engage with our european and international colleagues on this important issue. 3 the next generation eu ( ngeu ) fund before i conclude, i would like to touch briefly on the question of how the next generation eu ( ngeu ) fund may affect european financial markets and the attractiveness of the euro as a reserve currency. firstly, the approval of the ngeu last year was an important step in the response to the pandemic shock and complemented and reinforced the monetary policy decisions taken by the ecb, particularly the announcement of the pandemic emergency purchase programme ( pepp ). both programmes, to differing degrees, aimed at stabilising markets and were effective in doing this. the mere announcement of both stabilised markets ; this is clearer for ngeu since the time between the first announcements and the implementation was more than a year. aside from the initial effect on financial markets, the ngeu may increase potential growth in the euro area economy, particularly with the green and digital investment components. from a monetary policy perspective, this contribution to sustainable growth may help to reverse the decline in the real equilibrium interest rate and, in turn, it

, and private investment was also encouraged. this is especially important in a country like argentina which, after ten years of convertibility, was able to restore foreign exchange and monetary sovereignty. the certainties developing countries have – there are many colleagues from mercosur countries with whom we frequently meet –, enable us to realize there are many economic policy areas that we have recovered. as to central banking, these areas are related to certain instruments that are already part of our policy menu and are here to stay. i will briefly refer to three of them. the first is intervention in the exchange market. with their specificities and different monetary regimes, developing countries now know they have to intervene in order to curb high currency volatility ; in the case of argentina, in order to sustain a competitive exchange rate that underpins national production and employment. there are certainties about the fundamental role of international reserve accumulation which has enabled many of us to intervene and thus better weather the negative impacts of the international crisis. there is also strong consensus on the negative impact of short - term financial capital flows. as quoted here today, in 1944, raul prebisch said as regards hot money, i. e. the floating funds which have brought so many difficulties to our countries : it comes when we do not need it and leaves when it could be of use. this matter was discussed almost 60 years ago but today, with financial globalization, it is more current than ever. we know that short - term hot money weakens the processes of industrialization and production profile change in our countries, creating consumption and asset bubbles and, when it leaves the country, it causes a lot of damage. it is very important that we defend and value these certainties because they have to be part of developing countries ’ agendas when we negotiate at the international level. so far, developed countries, which have other serious problems and are focused on them, are perhaps not worried about these heterodoxies and only allow us to refer to them temporarily. we should not rule out the possibility that when everything goes back to normal, when exit strategies are implemented, these mechanisms, already part of our public policies, may be dismantled. and these mechanisms give us autonomy in this globalized world. i would like to mention that there is increased certainty or perhaps more discussion, both locally and globally, regarding the role of central banks and their responsibility, not only in maintaining monetary and financial stability, but also in ensuring that stability is consistent with economic growth