capital requirements. we recommended that the commission carry out an evaluation of whether the resultant amendments would be sufficient at eu level. further, the commission should also evaluate the sufficiency of the current capital requirements on real - estate - related lending, which has been the major source of losses in many financial crises, including the most recent one. corporate governance of banks finally, we also wanted to promote the strengthening of corporate governance and control of banks. actions in the following areas were suggested : 1 ) strengthening boards and management ; 2 ) promoting the risk management function ; 3 ) reining in compensation for bank management and staff, and shifting performance - based incentives more for the long term ; 4 ) improving risk disclosure and 5 ) strengthening sanctioning powers. conclusions banks are the backbone of the financial system, and their health is vital to regaining solid growth in the eu - wide economy. the structural proposals our group made rest on the idea of maintaining the possibility to supply all financial services within a single banking group. the aim is to leave it up to bank boards and management teams to decide what the best business model is in the future. bis central bankers ’ speeches against this backdrop, our proposed bank structures should be viewed as strengthening the general conditions which are needed to reduce conflicts of interest and distorted incentives that could lead to inefficient business decisions from the point of view of society, and endanger financial stability. bis central bankers ’ speeches

- value - added jobs that are increasingly taken over by machines. productivity, however, has slowed in the advanced economies in the last ten years. 15 technology can affect inflation indirectly as well, by fostering globalization and the development of global value chains. 16 the ‘ amazon effect ’ is one such technology factor : 17 the internet allows consumers to compare prices, thereby reducing retailers ’ margins with repercussions on price levels and dynamics. 18 rates will be raised and reinvestment interrupted only well past the horizon of the ecb ’ s net asset purchases. see, for example, jens weidmann ’ s speech on 18 january 2018. cf. auer, borio and filardo ( 2017 ). see manaresi and pierri ( 2017 ). a global value chain is a type of organisation in which the individual stages of production are carried out by companies located in different countries. see forbes ( 2016 ). cf. yellen ( 2017 ). thus, a country ’ s inflation would be largely independent of the domestic economic situation, making it harder for central banks to control it. this is only part of the story, however. globalization and technology have undoubtedly exerted downward pressure on prices. such factors have been at play for some time, though, and may account in part for the slow decline of inflation in recent decades, but for the very same reason they cannot explain the rapid decrease of recent years. moreover, globalization has been slowing lately, not accelerating. this has happened with integration through global value chains : the share of export value added generated outside the exporting country has ceased to grow worldwide since the onset of the crisis in 2008 ( figure 3 ). 19 the same applies to e - commerce, which in recent years appears to have had less of an effect on prices than before : in the united states the amazon effect is estimated to have reduced personal consumption expenditure inflation by 0. 1 per cent, which is less than the walmart effect did at the beginning of the millennium. 20 the profit margins of traditional retailers cannot keep falling forever : once equilibrium is reached, any cost increases are bound to be transmitted to the prices of final goods. the integration of the markets for goods and factors of production seems to have produced limited effects. the link between eurozone inflation and global unutilized capacity is tenuous. 21 empirical analyses support the hypothesis that globalization has not altered the relationship between inflation and output gap. 22 all told, it is difficult to pinpoint the causes