. inflation causes and consequences. asia publishing house, new york. 8 hartmann, p. and f. smets ( 2018 ). the first twenty years of the european central bank : monetary policy. ecb working paper no. 2219, december. figure 3 euro area growth source : eurostat. a tangible gain has been the improvement of the labor market. unemployment has dropped significantly and wage growth has picked up. yet, the final step to consumer price inflation has thus far proven elusive ( figure 4 ). figure 4 – euro area wage growth and core inflation source : eurostat and ecb. with recent headwinds to growth dampening the inflation outlook, the ecb took further measures to support inflation. nonetheless, given the characteristics of the inflation process that i have outlined, even now that economic slack appears largely absorbed, economists and financial markets alike see low inflation remaining persistent and converging to our inflation aim only sluggishly ( figure 5 ). figure 5 – euro area inflation expectations inflation expectations euro area percent, daily and quarterly data 2. 2 2. 0 1. 8 1. 6 1. 4 1. 2 1. 0 0. 8 0. 6 0. 4 survey of professional forecasters 5y inflation swaps 5y5y inflation swaps 1y1y source : ecb and refinitiv. the quest for policy scope all in all, the current situation facing the ecb is not one that was envisaged when the current monetary strategy was drawn up, back in 1998 and updated in 2003. the environment in which the ecb operates has evolved and so has the emu ’ s institutional architecture. against this backdrop, i support calls for a broad review of the ecb ’ s strategy, which should have as one of its main aims the widening of our policy scope. the challenges i have outlined in this talk warrant a discussion on the merits of increased flexibility in the face of external shocks. one way to achieve this would be the introduction of a symmetric band around the inflation aim, which would buy the central bank time and flexibility in responding to forces it cannot control. the monetary strategy could also be made more flexible by lengthening the horizon over which it would be desirable to bring inflation back towards its aim. increased flexibility could help the ecb to better communicate its commitment to price stability while acknowledging its currently limited control over short - run inflation. it would also provide additional room for maneuver to prevent the built up of macroeconomic and

. this is exactly why, more and more often, additional safety features are used – like facial recognition or fingerprints. but the answer to diminishing the weak link in cyber security – which is us, humans – might not be to take away meaning, but, on the contrary, to build on it. today, the complexity people have to deal with is increasing sharply, just like the complexity of the financial landscape ; the number of third parties is increasing, just like the interconnectedness and the dependency ; the complexity of cyber threats is increasing, just like the measures to prevent them ; and it is hard to predict when or where the next cyberattack will hit, but chances are that it will have to do with a human error. and so, it is all the more important that people, in all layers of an organisation, know the why of it all. why they need to follow certain processes and procedures. why they should preferably use meaningless passwords. why they need to protect themselves – and with that, their colleagues, their institutions, and the whole financial system. here lies a great responsibility for financial institutions – the responsibility of giving meaning. but one thing seems clear – cyber resilience should definitely not lead a secret life. it should very much lead a human life. 4 / 5 bis - central bankers'speeches thank you. 1 ian urbina 2014, the secret life of passwords, the new york times, accessed on 24 january 2023, < the secret life of passwords - the new york times ( nytimes. com ) >. 2 world economic forum 2022, the global risks report 2022 ( p. 45 - 56 ), world economic, accessed 24 january 2023, 5 / 5 bis - central bankers'speeches