requires us to shape our communication on the basis of our monetary policy reaction function. in a speech last month i summarised my thinking by saying that we do not want “ to drive like crazy at night with our headlights turned off ”. [ 31 ] the recent financial tensions have made this conviction even stronger. annexes 22 march 2023 everything everywhere all at once : responding to multiple global shocks english 1. the possible consequences that an incorrect calibration of monetary policy could have for financial stability and the transmission of monetary policy are discussed in panetta, f. ( 2022 ), “ mind the step : calibrating monetary policy in a volatile environment ”, keynote speech at the ecb money market conference, frankfurt am main, 3 november. 2. panetta, f. ( 2023 ), “ monetary policy after the energy shock ”, speech at an event organised by the centre for european reform, the delegation of the european union to the united kingdom and the ecb representative office in london, 16 february. 3. the risks of policy normalisation – in particular the interaction between rate hikes and quantitative tightening – are discussed in panetta, f. ( 2022 ), “ normalising monetary policy in non - normal times ”, speech at a policy lecture hosted by the safe policy center at goethe university and the centre for economic policy research ( cepr ), 25 may. 4. panetta, f. ( 2021 ), “ monetary autonomy in a globalised world ”, welcome address at the joint bis, boe, ecb and imf conference on “ spillovers in a “ post - pandemic, low - for - long ” world ”, 26 april. 5. the global supply chain pressure index, developed by the federal reserve bank of new york, decreased considerably in february 2023 and is now below its historical average. this decrease was broad - based across factors but driven mainly by a decline in european and asian delivery times. this latest estimate suggests that global supply chain conditions have largely normalised. 6. see chart 5 in panetta, f. ( 2022 ), “ greener and cheaper : could the transition away from fossil fuels generate a divine coincidence? ”, speech at the italian banking association, 16 november. 7. the ecb consumer expectations survey suggests that euro area consumer inflation expectations have reached a turning point. median expectations for inflation three years ahead fell to 2. 5 % in january 2023, from 3. 0

). 25. panetta, f. ( 2022 ), “ mind the step : calibrating monetary policy in a volatile environment ”, op. cit. 26. the first of these is a measured approach to interest rate increases and balance sheet normalisation. the second is the flexibility embedded in our reinvestments under the pandemic emergency purchase programme. the third is the transmission protection instrument. 27. the frequency of seven - day us dollar operations has been increased from weekly to daily. see ecb ( 2023 ), “ coordinated central bank action to enhance the provision of us dollar liquidity ”, 19 march. 28. panetta, f. ( 2021 ), “ monetary autonomy in a globalised world ”, op. cit. 29. in the past, when concerns about having reached the lower bound were dominating discussions, forward guidance helped insulate the euro area from financial spillovers. but forward guidance is not suited to the current environment. see panetta, f. ( 2023 ), “ monetary policy after the energy shock ”, op. cit. 30. ecb ( 2023 ), “ monetary policy statement ”, 16 march. 31. panetta, f. ( 2023 ), “ monetary policy after the energy shock ”, op. cit. reproduction is permitted provided that the source is acknowledged. media contacts