can reduce the costs by economising on energy use. and fiscal policy can play an important part in determining how the cost is spread across the economy, or across generations. but it cannot alleviate all the costs. the distributional evidence builds the case for targeted, temporary supports for certain households and businesses in more precarious financial situations. targeted supports also cushion the hit to overall economic activity since lower income households have a higher marginal propensity to consume out of additional income. and at the same time, they limit any knock - on inflationary effects compared to across the board interventions as well as being more fiscally sustainable. the challenges in relation to fiscal sustainability were set out in very clear terms in the recent report of the commission on taxation and welfare. it highlighted that given ireland ’ s demographic profile, our level of public debt, the need to meet our climate targets and other fiscal risks, the total amount of taxation required to fund public services will increase in the years ahead. it will be critically important that policy can help to build resilience in the economy, reducing the impact of future adverse shocks, by sustainably addressing these structural challenges. monetary policy also has an important role to play in returning inflation towards its medium term target. a return to low, stable inflation will assist families and firms in managing their budgets and planning for the future. to conclude, the economy faces a challenging period ahead in the face of ongoing high inflation and global uncertainty. this will weigh on demand and consumption, particularly in the short term, with 2023 projected to have a slower growth and higher inflation profile than previously expected. not all shocks are felt equally. some are better prepared to weather the storm. some are simply less exposed to the storm in the first place. policymakers must be aware of these important differences if we are to help everyone navigate a path through. thank you for listening and i am available for any questions. [ 1 ] cso ( 2022 ). labour force survey – q2 2022. [ 2 ] boyd l., byrne s., kennan e., and mcindoe - calder t., ( 2022 ). labour market recovery after a pandemic. quarterly bulletin 3 – signed article. central bank of ireland. [ 3 ] cso ’ s population and migration estimates indicate total net migration measured 61, 000 in the year to april 2022. [ 4 ] kbc consumer sentiment index, september 2022. [ 5 ] the full

philip r lane : globalisation and innovation in finance - policy challenges address by mr philip r lane, governor of the central bank of ireland, at the european financial forum, dublin, 24 january 2017. * * * acknowledgements : i thank camille blackburn and laura moretti for their assistance in preparing this speech. i am delighted to have the opportunity to speak at today ’ s european financial forum. the agenda for today ’ s event is quite broad but globalisation and innovation are two primary themes that are set to recur throughout today ’ s sessions. of course, the forces of globalisation and technological disruption have wide - ranging economic, social and political implications but i will focus more narrowly on the analysis of these themes in the context of the financial sector and the challenges for financial regulators and central bankers. i will first discuss financial globalisation before turning to financial innovation in the second part of this speech. while i discuss these topics sequentially, it is also clear that these forces interact. in one direction, information technology is a primary facilitator of financial globalisation. in the other direction, an integrated global financial system increases the potential rewards to financial innovation, in view of the importance of scale economies in the rollout of new technologies. in addition, internationally - diversified investors are an important source of risk - absorbing funding for innovating firms. 1 financial globalisation in the aftermath of the global financial crisis, the nature of financial globalisation has shifted. 2 international financial flows to and from advanced economies have been weaker than during the pre - crisis period, especially in relation to cross - border banking activity. in contrast, international financial flows to and from emerging economies have increased in importance, which is reinforced by the expanding share of emerging economies in global gdp. foreign direct investment ( fdi ) positions have continued to expand, in contrast to the portfolio equity, portfolio debt and non - portfolio debt categories. a striking pattern is that the recent expansion in fdi has been concentrated in positions vis - a - vis international financial centres, suggesting that the increased complexity of the corporate structures of multinational enterprises is playing an important role in determining the pattern and composition of direct investment flows. more generally, the global intermediation role of international financial centres poses analytical challenges in understanding the implications of measured international financial flows for the real economies of individual countries. for instance, the role of international financial centres makes it trickier to assess the underlying interconnections between national macro - financial conditions, national macro - financial