on euro area bond yields. in my view, there is much to be said, then, for soon setting aside the practice of replacing all maturing bonds. this additional tightening signal would underscore our commitment to ensuring that inflation returns to the medium - term target of 2 % in a timely manner. if we act too hesitantly, we run the risk of having to tighten monetary policy even more severely further down the road. past experience, too, has taught us that if monetary policy gets behind the curve, medium - term inflation expectations adjust upwards. and that would make it far more difficult for monetary policy to achieve price stability. 2 / 5 bis - central bankers'speeches this is why it would be wrong to now hold back on further steps towards normalisation for fear of a downturn. on the contrary, unrestrained inflation is itself a burden on the economy. the longer inflation remains high, the more of a strain it places on consumption and investment. and the greater the risk of it becoming entrenched at a high level in the medium term. that has to be prevented from happening. for my part, it is important that we be honest : curbing inflation also comes with a price tag. it is likely to temporarily be an additional dampener on growth. but the main culprits behind the economic weakness are the supply bottlenecks caused by the pandemic and the war. honesty also means acknowledging that the lift - off in interest rates will make interest rate risk materialise on balance sheets. this also affects us as a central bank : we hold a high stock of low - interest securities with, in some cases, very long residual maturities. the counterpart to these on our balance sheet is mainly short - term deposits of commercial banks. the interest on these is now rising. as a result, this may weigh on our annual results. the provisions on our balance sheet are available as an initial buffer against potential losses arising from financial risks. 4 fiscal policy : targeted softening of hardships we have to recognise that the path to price stability is not a sprint but a marathon. unlike the runners in the berlin marathon, we do not know from the outset how much longer we still have to run until we reach our goal. this is especially true since monetary policy measures do not have their full effect on inflation immediately, but only after a delay. to make rapid progress on this route, fiscal policy can also play a part. it is an enduring principle that sound public finances

joachim nagel : el economista speech by dr joachim nagel, president of the deutsche bundesbank, in honour of mr pablo hernandez de cos, governor of the bank of spain and recipient of the echegaray prize, madrid, 2 november 2022. * * * 1 introduction ladies and gentlemen, today we are celebrating the award of the echegaray prize to an outstanding economist and central banker. pablo, it is a great pleasure for me to speak at this wonderful event in your honour here in madrid. i could certainly talk for a long time about all your achievements and merits, but my time is limited, so i will have to remain brief. 2 life path and achievements allow me first to say a few words about you, your life path and your major achievements. pablo hernandez de cos was born on january 20, 1971. his family originates from santander, a beautiful region in the north of spain. this region is, i guess, more green but less sunny than average for the country. he graduated in economics and business administration at the university college of financial studies in madrid in 1993 and in law at the national university of distance education the following year. his career as a central banker started in 1997, when he joined the research division of the department of monetary and financial studies at the banco de espana as a senior economist. a year later, he moved to the economic policy analysis division at the department of economic analysis and forecasting, where he stayed until 2004. as you can see, pablo is familiar with the groundwork carried out by economists at central banks. he was one of the economic experts that central banks are famous for. perhaps i am stressing this point because i believe that getting to know a central bank from its heart is a highly valuable experience. in this period, pablo not only worked as a senior economist at a central bank, he also got his phd at the same time. a great achievement! meanwhile, he also opened a chapter in his life that someone from frankfurt like me is especially pleased to talk about : in 2000 he came to this city for the first time as a country expert at the ecb, staying for a few months. after receiving his doctoral degree, he deepened his frankfurt connection further and became an advisor to the executive board of the ecb in 2004. his second frankfurt experience lasted much longer, spanning three years until 2007. his first child was even born in frankfurt. this gives me reason to hope that he can