the need for a stability - oriented domestic monetary policy. this principle applies all the more to the current environment of elevated inflationary pressures and heightened financial market tensions. of course, i do not intend to invoke the impression that the globalisation of goods and financial markets has not altered price dynamics and transmission forces. to the contrary! but the bottom line of my arguments is, that globalisation ultimately raises the degree of uncertainty with which monetary policy decisions are taken. uncertainty, however, is something we are confronted with as policy makers on a almost daily basis. it asks for a robust monetary policy strategy. robustness in that context implies a broad analysis of monetary and economic indicators. but it also means a clear and wellknown strategic framework that puts price stability to the forefront. to put it in dylan ’ s words : globalisation certainly “ holds the wheel in spin ”. but it does not change the fundamental direction of a stability - oriented monetary policy, nor the need to take a medium - term view, because “ the times, they are a - changin ”. globalisation : basic remarks and characteristics let me start with some basic observations regarding globalisation. globalisation is a term referred to pretty often in the media, and by politicians and economists. however, there is no single definition of what globalisation actually means nor is there a single key figure for measuring its scale and evolution over time. to me, a useful starting - point is, quite fundamentally, the notion that globalisation describes the ongoing process of the international division of labour. in the wake of this process, the domestic markets for goods and services, as well as labour markets, are becoming more and more interlinked and interdependent internationally. in the absence of a single yardstick to gauge the extent to which globalisation is evolving, it is useful to look at various developments that, in combination, capture this process. let me just pick out two distinctive developments. first : the steadily rising volume of global trade, whose growth rate has been exceeding that of global gdp for a long time now. on average, global trade has grown 50 % faster than world gdp over the past 35 years. during the 1990s, global trade even grew twice as fast as global gdp. among the factors explaining this development are a number of developments which have particular relevance : more and more goods and services are becoming tradable. in addition, more companies and economies have become involved in foreign trade. let us briefly look at

wisdom on purchasing power parity has been under scrutiny. 1 at the bundesbank, we actively explore how the benefits of new data sources and of big data can be harnessed for use in our daily work. two years ago, we set up a project group with the aim of examining the potential of unstructured data for statistical purposes as well as economic and financial stability research. recently, we started using list prices of individual properties posted on internet platforms. i am sure that this could trigger further research in the field of residential property markets. 4. from price to financial stability : closing data gaps with regard to real estate markets one of the lessons of the global financial crisis has been that instabilities in markets for real estate can threaten financial stability. in contrast to price stability, there is no generally agreed metric for “ financial stability ". increases in real estate prices may indicate that risks to financial stability are building up. but other indicators, reflecting credit standards and the build - up of housing debt, need to be considered as well. these include the leverage of households, debt sustainability, amortisation requirements, and loan - to - value ratios. traditional statistics often do not reflect these indicators of financial instabilities. the g20 data 4 / 8 bis central bankers'speeches gaps initiative addresses this. 2 in its first phase, a handbook on residential property price indices was published in 2013. with regard to residential property prices, the bulk of the conceptual work has been done, and the focus has shifted to compilation and dissemination. quality adjustment remains a controversial topic and is still a major source of deviations across residential property price indices. the initiative is currently in its second phase. its main objective has shifted to implementing the regular collection and dissemination of reliable and timely statistics for policy use. in germany, prices of real estate property are available from several official and private providers. these indicators differ in terms of representativeness, periodicity, timeliness, breakdowns, and length of the time series. these data show that the prices of both residential and commercial property have risen considerably since 2010 ( figure 4 ). owner - occupied housing is currently about 25 per cent more expensive than in 2010, and prices for multi - family dwellings have increased by about 40 per cent. on average, commercial property prices have also increased by 25 per cent since 2010, driven mostly by prices for office space. as regards commercial property prices, however, many conceptual issues still need to be clarified. for example, while office buildings