##endatenbanken / zeitreihen - datenbank / 723452 / 723452? tsid = bbdp1. m. de. y. apt1. g. gp09sa000000. i15. a & dateselect = 2022 [ https : / / www. bundesbank. de / dynamic / action / de / statistiken / zeitreihendatenbanken / zeitreihen - datenbank / 723452 / 723452? tsid = bbdp1. m. de. y. apt1. g. gp09sa000000. i15. a & dateselect = 2022 ] source : 5. see https : / / www. bundesbank. de / dynamic / action / de / statistiken / zeitreihendatenbanken / zeitreihen - datenbank / 723452 / 723452? tsid = bbdp1. m. de. y. apt1. g. gp09sa000000. i15. a & dateselect = 2022 [ https : / / www. bundesbank. de / dynamic / action / de / statistiken / zeitreihendatenbanken / zeitreihen - datenbank / 723452 / 723452? tsid = bbdp1. m. de. y. apt1. g. gp09sa000000. i15. a & dateselect = 2022 ] 6. this “ allocation risk ” has been described in the bundesbank ’ s latest financial stability reviews ( deutsche bundesbank 2019, 2021 ). 7. see also the recent communication by the german financial stability committee ( afs ( ausschuss fur finanzstabilitat ) 2022b ). 8. the ecb ( european central bank )'s new strategy indicates that there is a clear conceptual case for the ecb ( european central bank ) to take financial stability considerations into account in its monetary policy deliberations ( ecb 2021 ). 9. this section is partly based on buch, buchholz, knoll and weigert ( 2021 ). 10. in this context, it has been argued that the harmonisation of insolvency legislation would

• the transformation of our economies into internationally competitive entities. at the national level, these objectives can be gleaned from manifestos, development plans, medium term economic strategy papers, public sector investment programs and budgets. the policies which are available to achieve these objectives are • monetary • fiscal • trade • international economic relations • incomes • structural • social • environmental let me on this occasion confine myself to monetary and financial policies, given the occasion for which we are gathered. the eccb in assessing the situation both domestically and internationally has identified consistent with the objectives set by the oecs heads two major objectives which are also consistent with the purposes of the bank as set out in article 4 of the eccb. these are stability and development. under stability the bank has two goals, namely – monetary stability and financial stability. monetary stability is tied to the performance of the exchange rate. we have chosen a fixed exchange rate regime, and have managed to successfully maintain this at 2. 7 ec to the us dollar since july 1976. this has required us to maintain a very high level of foreign exchange reserves, presently 96 % to the currency in circulation. this is above the legal limit of 60 % and is approximately equivalent to four months imports where the benchmark is three months. in order for this parity to be maintained, we focus our attention on the performance of the balance of payments, the fiscal and debt ratios of the countries, and the competitiveness of the currency as assessed by the real effective exchange rate. the monetary council has therefore set a number of benchmarks in the fiscal and debt areas which member governments have been requested to adhere to. financial stability is related to the safety and soundness of the banking system and the effective regulation of non - bank financial intermediaries. this requires the appropriate legislative and legal framework and the capacity to effectively regulate the financial system. let me put these two stability conditions in a way that the ordinary layman would understand. if the currency is devalued, the ability to purchase goods from abroad will be decreased and the prices of all goods will go up due to inflation. also, on the other hand, if wages and prices increase faster than productivity we will become less competitive. the monetary council has recommended to governments that they establish tripartite committees comprised of representatives from the government, private sector and the trade unions to monitor wages, prices, employment and productivity. with respect to financial stability, whereas in the case of the devaluation you will lose