some pre - crisis ‘ old normal ’. i would prefer to talk about a journey towards a new equilibrium, which should be more sustainable, resilient and inclusive than the old one. on that journey, a key worry at the global level is the now apparent dependence of growth on the accumulation of even more debt. this makes all parts of the global economy increasingly vulnerable to any future shock. this suggests that the rebalancing of the world economy is far from complete, but also necessary for sustainable growth and high employment, the ultimate goals of economic policy. 2 / 2 bis central bankers'speeches

be pursued consistently. this is so despite the – perhaps understandable – regulation fatigue that may be gaining ground. the tasks are different depending on the situation in each country or region. in the euro area, the key priority now is completing the banking union with common deposit insurance and by strengthening the european stability mechanism. meanwhile, the us and the uk should protect their regulatory achievements. it would be a big mistake to roll back what was achieved in the post - crisis years. this links to the management of monetary policy normalization, which is a balancing act, where the right course should depend on the particular circumstances of each currency area. this is the logic of the international system of floating exchange rates. however, monetary policy has international repercussions, the severity of which depends on the existing vulnerabilities of the countries that face these spillovers. as a consequence, many emerging market economies need to pay more attention to 1 / 2 bis central bankers'speeches developing macroprudential policies which could limit their particular vulnerabilities. having a large share of foreign currency denominated lending in the domestic market is an obvious example of such vulnerability, which has repeatedly caused serious problems in the past. weak balance sheets in the business sector are a vulnerability even in countries with no current account deficits. 3. a critical issue related to financial resilience is the question how to ensure that the monetary policy toolbox is sufficient when the next recession hits. having sufficient room of manoeuvre for active monetary policy is part of the resilience of the new equilibrium that we strive for. the problem is quite relevant because there are indications that the so - called natural rate of interest ( the medium - term equilibrium real rate of interest ) may have declined in the recent years, and may be clearly below what was thought to be normal in the past. this has several implications. where the convergence to sustainable price stability still requires significant monetary stimulus, as is the case in the euro area, this calls for prudence and for a gradual approach to monetary policy normalisation. in my view it is reasonable to assume that the unconventional monetary policy measures and instruments which were used during the crisis years ( and the ecb, for one, is still using ) will stay permanently in the toolbox, at least in reserve. 4. finally, i think that the word ’ normalization ’ as a description of the monetary policy outlook in the advanced economies is actually misleading, as it suggests a return to