innovation, in particular by the supply of fast payments services. against this background, in 2020 the g20 saudi presidency launched an ambitious and challenging plan to enhance cross - border payments at the global level and mandated the fsb to develop a roadmap, which was, as i mentioned, eventually published last october. given the complexity of the challenge, the roadmap is necessarily a multiannual project and will require progress to be made on many separate, yet often interdependent, fronts. the work plan has been structured around 19 pillars or “ building blocks ”, aimed at paving the way for a favourable global payments ecosystem, taking into consideration a very broad range of legal, regulatory and operational issues. this year, under the g20 italian presidency, substantial progress has been achieved by the groups responsible for these building blocks, despite the difficulties caused by the covid - 19 1 / 3 bis central bankers'speeches pandemic. possibly the most substantial progress has been that of setting out specific quantitative targets for the cost, speed, transparency and accessibility of global cross - border payments. these targets aim to build a shared commitment to a common vision and to obtain specific outcomes which will form the basis of actions that will need to be carried out in the future. they were the focus of a public consultation that ended in july. work is now well under way in taking on board the feedback from this public consultation and in drafting the final recommendations that will be published next month. tomorrow ’ s roundtable will take stock of the progress in implementing the roadmap and discuss the main challenges ahead. the g20 roadmap encompasses a wide set of initiatives, which cover legal, regulatory and operational issues. with respect to the latter, two main focus areas have been identified : the first is devoted to improving existing payment infrastructures and arrangements by strengthening the existing links ( or building new ones ) between the various payment systems and reducing settlement risks. the second covers emerging payments infrastructures and explores the potential of new multilateral platforms, global stablecoin arrangements and central bank digital currencies. the first solution would consist in interlinking existing payment systems. it would represent a fast, almost readily - available way to improve the efficiency of cross - border payments. its viability is already demonstrated by a number of thriving initiatives. a recent experiment carried out by the arab regional payments clearing and settlement organization and the bank of italy consists of interoperating tips, the eurosystem platform for instant payments

positive, some negative. but i think it ’ s safe to say that, without the depreciation, inflation would be much closer to target. other things have also contributed the rise over the past year, notably the rise in oil prices. in may 2016, ahead of the gfk / ec measure of headline consumer confidence shown in the chart uses the balances published by the european commission ( which are seasonally adjusted, unlike the gfk data ), but applies the same methodology as the gfk measure ( which uses a different aggregation than the european commission ’ s ). all speeches are available online at www. bankofengland. co. uk / speeches the referendum and prior to sterling ’ s fall, the mpc ’ s central forecast for inflation in 2017q3 was below the 2 % target. the second point – how inflation would also have been lower had households been as pessimistic as the foreign exchange market – is harder to get across, because you have to simulate the behaviour of consumption. i ’ m going to try and do that with a simple economic model. we ’ ll imagine an economy that has two sectors – one third of it produces internationally tradable output, two thirds non - tradable stuff – between which capital and people can move costlessly. we ’ re going to hit the economy with negative news about the future. specifically, we ’ ll suppose that people suddenly learn that, three years hence, productivity in the tradable sector is going to start to fall ( relative to base ). to fix the numbers, we ’ ll scale the hit so as to produce a material decline in the fair value of the exchange rate – 10 %, say. given the other parameters in the model, this requires an anticipated and overall decline in labour productivity of around 8 % in the tradable sector, 5 % in the economy as a whole. the results of the simulation are shown in charts 9 ( a ) - ( h ). because the foreign exchange market fully and correctly anticipates the productivity hit the depreciation occurs immediately and does nothing further when productivity actually falls ( 9 ( b ) ). in the interim, the weaker currency provides a big fillip to the tradable sector. its sterling profits rise significantly and, for as long as productivity holds up, this encourages a significant expansion in investment, employment and output ( the green lines in 9 ( c ), ( d ) and ( g ) ). this