phillips curve during the period of deflation. therefore, to achieve the 2 percent price stability target at the earliest possible time, the phillips curve needs to be shifted upward by an increase in the expected rate of inflation. namely, it is necessary not only to improve aggregate supply and demand balance but also to firmly raise the expected rate of inflation by significantly changing “ deflationary bis central bankers ’ speeches expectations ” of economic agents, such as firms and households. a combination of those two will lead to the achievement of the price stability target at the earliest possible time. the bank made a clear commitment to achieve the 2 percent price stability target at the earliest possible time, with a time horizon of about two years. as a means of underpinning the commitment, the bank has embarked on a new monetary easing policy, that is, quantitative and qualitative monetary easing. we believe that the bank ’ s strong commitment and decisive actions will significantly change the expectations among firms and households. looking at the financial markets, market expectations appear to have started changing. looking also at indicators that show the expected rate of inflation of the market and economic entities, some have suggested an increase. positive moves have started to take place, driven by the bank ’ s quantitative and qualitative monetary easing. in further pursuing the policy, we expect such moves to spread to firms and households, and deflationary expectations to be reversed. those firms and households released from deflationary expectations are expected to make active investment and consumption by fully utilizing accommodative financial conditions. such positive economic activity and a change in expectations will induce an improvement in the real economy and a rise in the expected rate of inflation, paving the way to the achievement of the 2 percent price stability target. final remarks the government has set its economic policy with a combination of three - pronged strategy ( three arrows ). namely, bold monetary easing, flexible fiscal policy, and a growth strategy to promote private investment. as for the first arrow of bold monetary easing, the bank, aiming to achieve the price stability target, has introduced a new monetary easing policy of quantitative and qualitative monetary easing. naturally, in meeting our price stability target, we do not want to see only consumer prices climbing to 2 percent. the price stability target we aim at should be achieved in a virtuous cycle in which the real economy improves in a balanced manner, accompanied by an increase in corporate profits, employment, and wages. if the government can effectively deliver two

feasible, is usually superior to an approach based on workarounds and emergency repairs. the proposals in the three areas i have just spoken about – first, incorporating proportionality clauses in eu legislation, second, easing reporting and disclosure standards, and third, creating a two - tiered system – are just some of the options that are available. i feel we should explore these ideas, and others, in an even - handed and open - minded manner. 6. conclusion ladies and gentlemen a loss of biodiversity can have grave repercussions for the world. in biological terms, this can even go as far as to increase the prevalence of infectious diseases in less biodiverse ecosystems because they support the transmission of pathogens. 7 [ 7 ] this can pose a risk to the health of humans, animals and plants. i think we ’ ve already made much more progress towards curbing these risks in the world of banking regulation than in the field of environmental policy. so we should proceed to review the points i have raised today in the calmest and most objective manner possible. the reforms embraced in the wake of the last crisis were the right thing to do, but looking particularly at the needs of smaller institutions, now is the right time to review them. in essence, it is all about reducing the burden on their operational activities. wish lists are just as pointless as proposals that risk destabilising the system as a whole. institutions with risky profiles shouldn ’ t benefit from any simplifications, nor should we create any loopholes that end up being used by so many institutions that smaller credit institutions run into difficulties. whether and how the more complex rules should be balanced out by introducing simplified regulations for smaller institutions is a matter than now needs to be explored while the eu rules are being revised. fundamental approaches should take precedence over purely details - driven initiatives. i would say to bank representatives, bank board members and employees : step beyond general criticism and put forward the most specific proposals you can. say exactly how the operational strains arise and how the day - to - day burden for smaller banks and savings banks can be mitigated in a way that does not weaken the regime as a whole. if we succeed in striking this balance, simplifications will be possible – that ’ s something i firmly believe. i now look forward to a lively and stimulating discussion with you. thank you very much for your attention. f keesing et al, impacts of biodiversity on the emergence and transmission of infectious