. coordinated policy actions are more powerful than stand - alone ones. that coordination may be domestic, or international. finally, a few lessons i take on the leadership or management front : diversity of past experience pays when blazing a new trail. crises are exhausting — a deep personnel bench is a key part of resilience. over - invest in technology and business continuity preparedness. stay in touch with staff — even the ordinary things must still happen. 4 / 5 bis central bankers'speeches thank you for your attention. now, i would welcome a discussion with you. 5 / 5 bis central bankers'speeches

, and so on. accordingly, we need to keep updating our understanding of the economy in real time. that is why we say that the outlook for inflation, and therefore monetary policy, is particularly data dependent right now. the meaning of data dependence what does it mean, in practical terms, to say that monetary policy is “ data dependent ”? after all, central banks always depend on data to measure their economy ’ s progress relative to expectations. what i mean in this context is that in a period of heightened uncertainty about how the economy is evolving and the implications for inflation, we need to pay very close attention to all the information we receive, including data, sentiment indicators and intelligence, and make continuous inferences about not just how the economy is evolving, but how its behaviour may be changing. let me give you four examples of the issues we will be monitoring. the first, and most important, is the evolution of economic capacity. i said that our version of “ home ” is at the intersection of full capacity and 2 per cent inflation. but full capacity can be a moving target. this is because when companies increase investment, they augment their capacity to produce through some combination of raising their productivity and increasing their workforce. this is a welcome development because, as the economy approaches full capacity, investment spending can have the effect of pushing out those capacity limits, giving the economy more room to grow in a non - inflationary way. in short, this is something worth encouraging. to some extent, this happens at this point in every economic cycle, but the protracted cycle we have been through makes this issue particularly relevant this time around. a second issue is the question of inflation and technology. some economists have cited technology as contributing to the weakness in global inflation. the digital economy may be allowing goods and services to be produced and delivered more efficiently, helping to keep prices down. we may also be seeing stronger competition through e - commerce, which affects how retailers set prices. it is worth emphasizing that this type of disinflation increases everybody ’ s purchasing power and therefore is also a positive development. the bank would want to estimate the impact of technological developments on trend inflation and, assuming the impact was temporary, see through it, provided that inflation expectations remained well anchored. there is a lot more work to be done to understand both the size and persistence of these effects. a third issue is wage growth, which has been slower than would be expected in an economy that is approaching full output.