financial stability review, may. [ 28 ] heider, f., saidi, f. and schepens, g. ( 2019 ), “ life below zero : bank lending under negative policy rates ”, review of financial studies, vol. 32, no 10, pp. 3728 - 3761 ; darracq paries, m. et al., op. cit. [ 29 ] adrian, t. and liang, n. ( 2018 ), “ monetary policy, financial conditions, and financial stability ”, international journal of central banking, vol. 14, no 1, pp. 73 - 131 ; schnabel, i. ( 2020 ), “ covid - 19 and the liquidity crisis of non - banks : lessons for the future ”, speech at the financial stability conference on “ stress, contagion, and transmission ” organised by the federal reserve bank of cleveland and the office of financial research, 19 november. [ 30 ] schnabel, i. ( 2020 ), “ how long is the medium term? monetary policy in a low inflation environment ”, speech at the barclays international monetary policy forum, london, 27 february. 24 november 2020 slides related topics coronavirus monetary policy policies price stability central banking strategy review inflation euro area interest rates banking sector uncertainties economic development disclaimer please note that related topic tags are currently available for selected content only. european central bank directorate general communications sonnemannstrasse 20, 60314 frankfurt am main, germany tel. : + 49 69 1344 7455, email : media @ ecb. europa. eu website : www. ecb. europa. eu reproduction is permitted provided that the source is acknowledged. media contacts copyright 2020, european central bank https : / / www. ecb. europa. eu / press / key / date / 2020 / html / ecb. sp201124 ~ bcaebee7c0. en. html 13 / 13

lorenzo bini smaghi : europe, the united states and the new challenges to the global economy speech by mr lorenzo bini smaghi, member of the executive board of the european central bank, at a conference organised by the council for the united states and italy in venice, venice, 11 june 2010. * * * it is a pleasure to attend this workshop, and especially to have an opportunity to consider relations between italy – as well as europe more generally – and the united states. i must admit to having felt, in recent months, a growing frustration to hear it claimed at conferences and to read in articles that the transatlantic relationship is in crisis and is disintegrating – irredeemably. i won ’ t go into the arguments put forward by those who hold this view, but i would rather report on how far it is from reality – at least from the perspective of those working in an institution responsible for the conduct of economic policy. the starting point of my analysis is the common challenge we face, which is to restore sustainable growth after the deepest economic and financial crisis of the post - war period, against a background of great global change. this challenge has been approached by europe and the united states mainly through three lines of action : macroeconomic policies ; financial market reform ; and relations with the other major players in the world economy. i would like to examine these three factors, indicating where perspectives and transatlantic action converge. let ’ s start with the economic situation. i won ’ t dwell on describing europe ’ s economy, particularly that of the euro area, or the us economy. both started to grow during last year, at a pace that looks faster in the us, as is typically observed in this phase of the cycle. domestic demand seems stronger on the other side of the atlantic, thanks to the dynamism of private consumption, which for now remains subdued in europe, where exports are the main engine of growth. the main risk factors underlying the recovery are the same for the two areas, namely : uncertainty about whether growth can be self sustained, without relying mainly on the policies aimed at stimulating demand which have been put in place by most industrial countries in response to the crisis ; turbulence in financial markets, which has shifted to sovereign risk ; unemployment, which remains high, although it seems to have peaked ; the situation on the capital markets, particularly the soundness of banking systems in the aftermath of the economic and financial crisis, and their ability to provide adequate credit to the economy