given the major challenge posed by populism, how can the ecb be brought closer to the citizens? this is one of my priorities. bringing the ecb closer to the people requires dialogue and explanations. we need to engage with our fellow citizens and enter into dialogue with them. we need to explain to them – also through you – what the ecb does and that we are committed to doing its work effectively. we should bear in mind that three - quarters of euro area citizens are in favour of the euro. your mandate is to ensure price stability. is this the main issue today? doesn ’ t asking the question imply an assumption that price stability has been maintained? i would take that to be a compliment for the ecb. indeed, since the introduction of the euro, annual inflation has averaged around 1. 7 % in the euro area. however, inflation currently stands at 1 % and inflation projections are still low, at some distance from the level of below, but close to, 2 % that we would like to reach over the medium - term. the president of the european commission, ursula von der leyen, has presented her “ green deal ”. how will it interact with ecb policy? are you going to transform the ecb into a green bank? i commend the determination of my friend, ursula von der leyen, and her commitment to the environment. this battle is to our credit in europe, with all of us acting within our remits. in this, i also include the european investment bank. we will play our part within the framework of our mandate of maintaining price stability and of banking supervision. what effects do climate - related risks have on our growth and inflation projections? what signals do we send through our bond purchases and what assets are held by the banks that we supervise? the stakes are high enough to arouse a keen interest in these questions, while pursuing our primary mission. as regards monetary policy, the review of our strategy will be the ideal time to address these questions. given the low or even negative interest rates, are savers right to be worried about their savings? 2 / 4 bis central bankers'speeches the measures taken aim to maintain stable prices. in the medium to long term, this ensures the best possible economic environment and the preservation of purchasing power for all, whether savers or borrowers. interest rates are instruments rather than objectives in themselves. there have been times in europe when savers invested in money market funds that delivered

a substantial number of multifamily units currently under construction will be delivered next year, helping to ease the housing shortage. still, these positive developments are likely to feed into measured consumer prices only gradually. services prices more broadly have accelerated sharply this year and may prove to be a persistent factor keeping inflation elevated. demand for services continues to recover from its pandemic lows, with the release of pent - up demand for travel evident to anyone who has spent much time in dtw and other airports recently. labor compensation is a key factor for non - housing services prices, and growth in labor costs remains well above pre - pandemic rates. there has been some moderation recently, with slowing in average hourly earnings and in the employment cost index. but wage growth remains above what would be consistent with 2 percent inflation, given prevailing trends in productivity growth. productivity in michigan and the other parts of the country that boast manufacturing hubs, we all understand the importance of productivity. productivity growth is a key factor in the - 3health of the overall economy and in the daily lives of all americans. because ultimately, it drives rising standards of living for all of us. growth in labor productivity, or output per hour worked, has been lackluster in the u. s. economy and around the world in recent years. 1 some observers fret that we are running out of innovative ideas to squeeze more outputs from the same inputs. 2 others look around and see amazing technology used in cutting - edge factories, warehouses, and stores and wonder if the innovation is happening but not spreading as fast as it once did. whatever the cause, in recent years output per hour has only increased at half the rate it did as recently as the mid - 2000s. this is cause for concern. over the first three quarters of 2022, productivity in the business sector has recorded a disappointing decline of 3¾ percent at an annual rate. payroll employment in the private sector has continued to increase, yet gross domestic product ( gdp ) has done little more than move sideways, resulting in an outright decline in labor productivity. however, the recent decline in productivity is partly an artifact of the pandemic. in 2020 and 2021, productivity soared when firms found ways to keep producing while many employees were away from the workplace ( figure 1 ). meanwhile, the economy shifted away from services — a lower - productivity sector — and toward goods — a higherproductivity sector — as households substituted new televisions for