mario draghi : unveiling of the 5 euro banknote of the new europa series short address by mr mario draghi, president of the european central bank, at the archaeological museum, frankfurt am main, 10 january 2013. * * * ladies and gentlemen, i too would like to warmly welcome you to today ’ s event and thank you for having accepted our invitation. in particular, i would like to thank you, mr wamers, for your kind words. i am very pleased that you have made available this special setting of the archaeological museum for the unveiling of the new 5 euro banknote and for the hosting of the “ new face of the euro ” exhibition. frankfurt is one of the european union ’ s financial capitals, a very international city and an important one for trade and finance in germany. this is one of many reasons why frankfurt has become the city of the euro and the seat of the european central bank. this museum, among its many treasures, displays items from classical antiquity. so it is quite appropriate for europa, a figure from greek mythology, to be on show here and for us to unveil the new banknote that includes her portrait. the 5 euro will be the first banknote of the second series of euro banknotes, the so - called “ europa ” series. it will gradually replace the first series of euro banknotes, which was introduced on 1 january 2002. that ’ s the date most people remember – it was when the euro finally became “ real ” for 300 million citizens in the then 12 euro area countries. and it was one of the milestones laid down by the founding fathers of economic and monetary union in the treaty of maastricht more than 20 years ago. over the years, euro banknotes have become the most visible symbol of european integration. the single currency, the euro, was conceived as a key step towards that goal. despite the challenges facing the euro area, progress was made in 2012 and i am confident that 2013 will bring a deepening of economic and monetary union and will strengthen european integration. the ecb plays a key role in bringing the countries of europe closer together. besides our core function and mandate to guarantee price stability in the euro area as a whole, one of our tasks is to develop what we could call “ our product ”, the euro banknotes. the new series of banknotes will continue to reflect the unity and diversity of our continent. the word “ euro ” is now written in the

the ecb. in its latest survey of 8 january 2001, consensus forecasts'projection for inflation was 2. 0 per cent in 2001. changes in long - term interest rates are another indicator of inflation expectations. implied forward rates, which measure market expectations concerning future short - term rates, can be derived from long - term rates. if norwegian long - term forward rates are substantially higher than corresponding rates in the euro area, this may be an indication that, over time, market participants expect higher price inflation in norway than in euro countries. however, because interest rate expectations cannot be directly observed, some uncertainty with regard to the calculation method must be taken into account. chart 12 shows movements in the long - term forward rate differential against germany. a positive forward rate differential reflects to some extent a relatively small market for norwegian government bonds compared with other countries. the yield on norwegian government bonds is therefore normally higher than the yield on corresponding german bonds in order to compensate for liquidity risk. the forward rate differential is generally low, indicating that in the long run inflation in norway is not expected to be substantially higher than in euro countries. as with the information provided in consensus forecasts, forward rates also indicate that participants in financial markets have a reasonable degree of confidence in monetary policy. the degree of confidence in monetary policy is also reflected in the foreign exchange market. waning confidence results in a weaker and more unstable krone exchange rate. chart 13 shows developments in the market's evaluation of the probability distribution for the krone exchange rate one month ahead. a flat curve reflects considerable uncertainty. the curves, which are derived from prices for currency options, show that the uncertainty surrounding the future krone exchange rate is considerably less today than at the beginning of 1999. both surveys and financial indicators, such as forward rates and prices for currency options, can provide information about confidence in monetary policy. even though such information is useful, it does not provide a sufficient basis for evaluating whether monetary policy has been successful in relation to the objective set out in the exchange rate regulation. in order to evaluate in retrospect the monetary policy that has been conducted, we can also examine developments in actual inflation and the krone exchange rate. it should be mentioned, however, that we cannot solely consider whether developments in inflation and the exchange rate have been satisfactory in relation to the objective. we must also, on a discretionary basis, evaluate whether the exchange rate and inflation could have been stabilised at lower real economic costs. when assessing