average. 20 the earlier liberalisation of capital flows and easing of restrictions on foreign investment played an important role in facilitating the rise in investment in the 1990s. given new zealand ’ s historically low savings rate, it seems unlikely that the surge in investment could have been funded from domestic sources. see brook, collins and smith ( 1998 ). 21 fidora, schmitz and tcheng ( 2017 ) examined 138 episodes of sizeable nfl reductions across advanced and emerging economies to identify the factors underlying those reductions that were sustained over the medium term. the authors conclude that sustained reduction in nfl is more likely for advanced economies when a current account surplus and strong real gdp growth are experienced. 22 fiscal strategy report, published 25 may 2017. the government intends to be within the 10 - 15 percent of gdp band by 2025. 23 labour and greens party budget responsibility rules in government after the 2017 election, accessed at http : / / www. labour. org. nz / budgetresponsibility. ref # 7076865 v2. 1 the business sector has been providing a small boost to the current account in recent years mostly through an increase in saving as a share of gdp. business investment relative to gdp has remained broadly stable. while this dynamic has contributed to the narrowing of new zealand ’ s current account deficit, it may not necessarily be a desirable feature over the longer term. lower business investment as a share of the economy would likely lead to a deterioration in the capital stock and lower growth in productivity. over the long term, such a development would lower potential gdp growth and could result in a higher nfl - gdp ratio as actual gdp growth slowed. a key source of risk surrounding the outlook for new zealand ’ s nfl – and the economy and financial system more widely – is the saving and investment behaviour of households. real household consumption has been less responsive to housing wealth since the mid - 2000s, and household consumption was weaker than the bank anticipated in recent years, particularly on a per capita basis. 24 however, household spending has been much stronger in the past few quarters, and recent downwards revisions to household saving estimates25 have led to a widening of the household sector ’ s saving - investment gap ( as seen in figure 10 ). much of the investment undertaken by the household sector is in the form of new house builds and renovations to existing homes. 26 if the housing demands associated with population pressure and existing shortages cannot be met by increased household sector or domestic saving more broadly, it will be reflected in

, for example, compliance with data protection laws and regulations. the assessment of whether to involve cloud services as part of preparedness solutions should probably be done on a case - by - case basis for the services and scenarios. the usefulness of cloud data may also depend on whether the data can be utilised for providing services to users. finding a balance between preparedness based on regulation and voluntary arrangements is also important. on the one hand, regulation enables a level playing field for all parties. on the other hand, regulation might be seen only as an enforcing factor that could hinder voluntary close cooperation and preparedness solutions in the market. this may apply especially to potential common or uniform preparedness solutions in the nordic countries. finally, let me conclude my remarks by referring to cbdcs as a potential future way to increase the resilience of our retail payment landscape. the ecb governing council should decide next month on moving to the next phase of the preparations for a digital euro. if we are to introduce a new retail payment method in europe, we need to design it so that it truly brings us new rails that are operationally separated from existing ones. moreover, i believe it is necessary to take resilience issues on board right from the beginning of the project. with careful planning, a digital euro could become a key feature of a secure, resilient and efficient european retail payment landscape. it could also become a major part of our preparedness in the future. thank you. 6 / 6 bis - central bankers'speeches