food and energy, which logically has a strong and permanent impact on inflation. furthermore, by strengthening the magnitude of global shocks in relation to more specifically domestic shocks and favouring the international transmission of the latter, globalisation introduces a much greater synchronisation of inflationary cycles between countries, with the ensuing risks of amplification. overall, the effects of globalisation have ceased – probably in the long term – to be spontaneously disinflationary. the second topic that i wish to discuss concerns globalisation and financial innovation. there is, in my mind, no doubt about the long - term benefits of the financial innovation process that we have been witnessing over the past twenty years. however, we can also see that it may be accompanied by cyclical developments and structural changes that could potentially prove to be disruptive for monetary policy. monetary and financial conditions are simultaneously influenced by central bank decisions, but are also increasingly affected by sometimes exogenous trends in asset prices and the pricing of risk. the monetary policy transmission mechanism is more fraught with uncertainty and less " linear " than it used to be, as shocks on asset and risk prices introduce discontinuity into financing conditions. these developments underscore two interesting issues in particular that i would like to briefly consider. the first concerns monetary policy responses. it will have escaped nobody ’ s attention that these responses are not identical across all countries. in my view, this reflects different situations more than divergent approaches. all of the world ’ s economies are not affected in the same way by property market shocks or developments on credit markets. in particular, we can observe that the distribution of credit remains very dynamic in europe and that, in most euro area countries, property markets remain relatively stable. more fundamentally, it seems to me that developments in the economic and financial context of globalisation bear out and reinforce the importance given to what, in eurosystem parlance, we call monetary analysis, i. e. the examination and analysis of the main monetary and financial aggregates. we derive three major benefits from our monetary pillar. first, it favours the anchoring of long - term inflation expectations, which is essential when, as is currently the guilloux s. and kharroubi e. ( 2008 ), “ some preliminary evidence on the globalization - inflation nexus ”, working paper series n°195, january case, instantaneous pressures are strong. second, it constitutes an integrated framework for the analysis of financial and

denis beau : new technologies and monetary policy frameworks opening remarks by mr denis beau, first deputy governor of the bank of france, at the international monetary fund ( imf ) / reinventing bretton woods committee ( rbw c ) seminar on “ new technologies, financial inclusion and monetary policy in cca countries ”, session 3 : new technologies and monetary policy frameworks, 12 july 2021. * * * from its monetary and financial stability mandate perspective, the banque de france pays a lot of attention to innovations that may alter the functioning of the real economy and the financial system, in particular digital technologies. this is exemplified by multiple experiments involving public and private institutions we launched since 2020. through these experiments, the banque de france is notably showing its commitment to reconsider, if necessary, the way it makes available central bank money for settlement and payment processes, to support with the provision of central bank money in digital form, the spread of new technologies and to help address the challenges those technologies raise for the fulfillment of our monetary and financial stability mandate. but the issuance of a cbdc is only an aspect of the policy responses that are to be considered given the risks and opportunities brought by digital technologies. so i would like to start my remarks with a quick overview of those risks and opportunities, from my central banker perspective, then turn to the public policies that can help maximize those opportunities and limit those risks and the contribution that a cbdc can make, and end up with a few thought on the impact the issuance of a cbdc may have on the implementation of monetary policy. a. risks and opportunities of new technologies : a central banker perspective 1. let me start with the opportunities and risks from a macro financial perspective. the digitalization of finance holds many promises for society. it can reduce the cost of payments, especially cross - border ones. digitalization, thanks to the use of big data and ai can also improve the allocation of savings, for instance by improving the information set used in credit decisions. the tokenization of financial assets can make financial exchanges safer and faster. digitalization can also enlarge access to finance to more people, for instance, new insurance contracts may emerge through smart contracts. more generally, the hope is to make finance more user - centric and stimulate financial inclusion. from a purely monetary point of view, the digitalization of the financial system is also an opportunity. the entry of new players can reduce rents in the financial sector, allowing for a