professorial chair in government and official statistics at the up school of statistics, manifests the satisfaction of the bangko sentral ng pilipinas in the contribution of the chair holders. therefore, when up president roman and dean echanis approached the bsp for upgrading the old cbp / bsp chairs to up centennial professorial chairs, they found ready support within the monetary board. in awarding the chairs, the bsp affirms the academic excellence and freedom that makes the university of the philippines what it is today. the professorial chairs provide funding support for research but the chair holders are free to set the research agenda within the sphere covered by the professorial chairs. on the whole, the gains to the up exceed the obvious opportunity to retain and upgrade its most important resource, its faculty. it provides a chance to generate research and facilitate extension activities among the major units of the up system. for its part, the bsp benefits through improvements in the existing body of policy - oriented social science research, of which it is both a producer and user. our partnership with the university will allow us to further avail of intellectual assets to generate ideas, evolve good practices, access good vetting and generate competitive advantage in a difficult policy environment. i must say that the establishment of the bsp up centennial professorial chairs is also in recognition of the role of the university of the philippines as the alma mater of the many professionals among its staff. through these offerings, we hope to continue to provide up ’ s community of academics and scholars the opportunity to generate ideas and applications that uphold the long - standing up tradition of academic rigor, intellectual freedom, and practical relevance. more importantly, we hope that the research generated through the professorial chairs will be of benefit to policymakers at the bsp and in government who are engaged in the quest for socioeconomic development, one that will truly meet the development aspirations of filipino society. the bsp up centennial professorial chairs also serve as a challenge for up ’ s community of academics to continue to serve as catalysts for meaningful change in our society. once again, the bangko sentral celebrates with you the first 100 years of the university of the philippines and look forward to the next one hundred years of excellence in research and education at up. maraming salamat at magandang hapon sa inyong lahat!

- linear forward guidance, mentioning explicitly our tolerance for inflation overshooting, with reference to past inflation shortfalls. it is the combination of these three levers that should be used as the foundations of the “ equilibrium triangle ” of our monetary policy in this next phase of the covid crisis. ii. wider expectations are emerging let us return to the question of broadening public expectations of central banks. central banks are facing the risk of being considered not only the only game in town, but also the all - purpose game. that said, the reality of climate change, rising inequality – which i will touch briefly – and risks to financial stability – which you invited me to focus on – are all elements to be taken into account, and as such are parts of the ecb ’ s strategic review, more than the fed ’ s one. ii. a. climate change considering climate change is neither a mission creep, nor a mere militant conviction or a fad. it is an imperative : climate change does affect our ability to achieve price stability, our primary objective. on one side, extreme physical risk or more gradual transition risks will, and do already, affect supply. on the other side, the implementation of policies to mitigate climate change such as carbon taxes, emission targets or border adjustment tariffs will also affect input and consumer prices. for example the recent jump in headline inflation in the euro area illustrates these two points. part of the recent increase in energy prices was linked to higher electricity prices in spain due to unusually cold weather and the introduction of a carbon surcharge on prices of liquid fuels and gas in germany. in my view, there are three measures we central bankers can take. vi the first is to incorporate climate change into our macroeconomic models. second, we must gradually decarbonise our balance sheets in a pragmatic and targeted way by adapting the valuation of our assets. third, by disclosing the criteria by which we value assets, we can set a standard that others will follow. and market neutrality – which should take into account the mispricing of climate risks – should not put a brake on carbon neutrality. ii. b. inequalities page 7 sur 9 monetary policy inevitably has redistributive effects. it transfers revenue between lenders and borrowers, and affects asset prices and hence wealth. the evidence is preliminary but it suggests that the effects of more accommodative monetary policy has reduced income inequality by boosting revenues thanks to