the world has changed. today the eu counts 27 members and 19 countries have adopted the euro. the addition of croatia and bulgaria will soon bring the latter number up to 21. along with this impressive progress, there was of course a significant loss : the u. k. opted out of the single currency from the start and has more recently exited the eu altogether. we continentals may regret those decisions but we respect them. we ’ ll miss great british architects of our projects, like former chancellor sir kenneth clarke, whom i can personally testify to how much he contributed. what we do sometimes regret is when britain ’ s vibrant debate on european issues verges on schadenfreude in relation to our own projects and ambitions. take, for instance, sir william cash, a long - standing conservative member of parliament, who at a debate on euro membership in 1997, insisted that “ the euro would be extremely weak ” and that “ we are heading for disaster. ” fourteen years later, in 2011, bill cash wrote that “ the euro with its one size fits all approach and the uniformity demanded by the eu simply cannot work... the survival of the euro itself is in question due to its structural shortcomings and the inherent workings of monetary union. ” well, here we are, more than a decade later, and the euro is still alive and kicking. not only has the euro survived, but it is recognised and used globally, including outside its own borders as both a store of value and a means of trade. the single currency has also proved remarkably stable, with inflation averaging 1. 7 % since its inception in 1999, compared with 4. 9 % during the two decades before. the euro has therefore helped to protect the purchasing power of european citizens, which has increased by 15 % since 1999. page 3 sur 9 moreover, the euro is not simply an elite project as is frequently charged. it is also a popular success ; it inspires trust which is the core value of a currency. the latest standard eurobarometer poll conducted in spring 2021 reported that 79 % of the population in the 19 countries using the euro believe that having the currency is good for the eu. that ’ s up from 66 percent a decade ago. even wellknown nationalist politicians, including in my own country, have dropped or backed - off their anti - euro stances because they have concluded that the policy is an electoral dead - end. obviously as governor of the banque de france and

payments imbalance in the majority of economies in the region, but are a reflection of a global phenomenon of ample liquidity worldwide. hence, there is a potential for capital flows to be larger and more volatile, and effective management of its impact will require a constellation of policies, both economic and financial. under inflation - targeting, a flexible exchange rate system will be a first line adjustment that can help lessen the risk to financial stability. next, to manage the impact on domestic liquidity, it will be useful for central banks to have a variety of monetary tools to absorb liquidity and influence market conditions. but, to deal effectively with both price and financial stability, two instruments will be needed. the first is monetary policy that focuses on price stability. the second is bank regulation and effective supervision that ensure financial stability through maintaining a robust and resilient financial system. important in this context for emerging economies is the strengthening of risk management and governance of financial institutions. furthermore, if needed, monetary and financial policies can be further supplemented by macroprudential measures aimed at reducing procyclical behaviour in the financial system. and finally, running fiscal surpluses is an effective counter - cyclical measure to restrain the impact of demand expansion on domestic inflation and asset prices. the third challenge is to develop and maintain a robust, efficient, and resilient financial system. as i noted earlier, a resilient banking sector is most crucial for helping the economy to adjust to the impact of external shock. an efficient financial sector will also raise the ability of the private sector to manage risk. in the last fifteen years since the asian crisis, much has been done to strengthen the region ’ s financial systems. nonetheless, much more can still be achieved in the context of financial market development, enhancing competition, and putting in place the needed financial infrastructure to help facilitate better risk management by banks and the private sector. in the thai case, we are moving in this direction with the launch of our second financial sector master plan last year that focuses on improving efficiency, access, and the comprehensiveness of the thai financial sector. in general, apart from lowering the risk to financial stability through better risk management, a robust and efficient financial sector will also raise the capacity of emerging economies to generate investment from their local savings. this, in my view, is where the real issue lies in solving the problem of global imbalance. so, this very much concludes what i plan to say to you this morning in my address. i