jose manuel gonzalez - paramo : evaluating the resilience of the eurosystem ’ s operational framework under stress closing remarks by mr jose manuel gonzalez - paramo, member of the executive board of the european central bank, at the second symposium of the ecb - cfs research network on “ capital markets and financial integration in europe ”, frankfurt am main, 14 february 2008. * * * ladies and gentlemen, the ecb - cfs research network was launched almost six years ago to promote research on capital markets and financial integration in europe. the network has been extraordinarily successful in doing just that, by addressing a wide range of topics in a series of workshops and symposia. this symposium is taking place at a time when financial markets have been put under stress and the financial world is struggling with the consequences. this episode clearly demonstrates that research on capital markets is as important as ever, as the underlying causes of the turmoil and their consequences need to be identified and addressed. i will conclude this symposium by evaluating the resilience of the eurosystem ’ s operational framework under stress, drawing tentative conclusions from its performance during the ongoing turmoil in financial markets. in this respect, i would like to underscore the importance that central banks attach to well - developed capital markets, especially in stressful times. 1. introduction as you are aware, the turmoil originated in segments of the financial market that were seemingly unrelated to the eurosystem ’ s sphere of interest and were, moreover, in a different part of the world. still, the consequences of that turmoil for the eurosystem ’ s ability to conduct monetary policy quickly became evident as those extreme developments spilled over into money markets and, in particular, had a strong impact on interbank lending in the eurosystem money markets. a central bank ’ s ability to steer short - term money market rates is, of course, a prerequisite in order for the monetary policy transmission mechanism to function, as monetary policy impulses are then transmitted to longer maturities. i will briefly outline some elements of the eurosystem ’ s operational framework that have proved crucial in order for the ecb to be able to continue to influence short - term money market rates in spite of the difficult situation in the financial markets. i will argue that the eurosystem ’ s framework has proven to be adequately equipped to address stressful situations of this type. 2. the design of the ecb ’ s operational framework the operational framework

markets are, in the future, even better equipped to cope with such a situation. 5. conclusion of the symposium ladies and gentlemen, today ’ s symposium has very much helped to enrich our knowledge about capital markets and the state of financial integration in europe, and we have all benefited greatly from several interesting and stimulating discussions. this second symposium organised by the ecb - cfs research network is a forward - looking event. just as the previous symposium, which took place in frankfurt in may 2004, saw the network ’ s activities extended for another three years, this second symposium will launch the third stage of the ecb - cfs network, the purpose of which will be to stimulate research cooperation between distinguished academics, policy - makers and industry experts, looking at : financial systems as risk allocators and risk distributors ; the integration and development of retail finance ; and financial modernisation, governance and the integration of the european financial system into global markets. the very fact that the network ’ s activities have been further extended testifies to our certainty as regards its continuing success as a platform for policy - relevant financial research. in this regard, i would like to draw your attention to the next ecb - cfs conference, which will be hosted by ceska narodni banka in prague on 20 and 21 october 2008. the title of this event will be “ the market for retail financial services : development, integration and economic effects ”. details of the programme and a call for papers can be found on our website. we look forward to receiving contributions of the same high quality as those presented over the last two days. thank you.