: large gains often come at the expense of some losses. 1 / 3 bis - central bankers'speeches the last paper of this session explores the increasing reliance on bond financing by small, private, and unrated firms in the euro area. i understand that this shift has implications for financial stability and firms'access to credit, especially during economic turmoil. in a more general context, the global rise of bond financing is of course of particular interest in europe, as its financial sector has always been heavily bank - based relative to the us. the topics on which the second session focus follow naturally from the first. we will first see research on the potential of suptech, the use of innovative technology by supervisory agencies to support supervision, in enhancing financial stability. this type of research is of high policy relevance since suptech initiatives have gained momentum around the world, but little is known about how the use of suptech impacts bank behavior. next, we will hear about the emergence of two distinct types of banks - high - rate and lowrate banks - each characterized by different deposit rate behaviors and how technological advancements in banking contributed to the divergence between these two types. understanding this shift is particularly relevant today, as more banks opt to operate online and the allocation of deposits across banks has significant implications for the transmission of monetary policy. the last session of the day features another three interesting papers. the first paper looks on how bankers affect the personal finances of their social connections. this is an idea that it worths examining given that earlier work shows peer effects play an important role in various financial decisions by households. the effect that financial intermediaries have on the macroeconomy, has been central to macroeconomics and has received significant attention from researchers in recent decades. as such, the session also includes a paper on the causal effects of changes in financial intermediaries'net worth in the aggregate economy. finally, the second day of the conference will end with a paper suggesting a unified model on how firms should optimally manage emissions through production, green investment, and the trading of carbon credit. this type of research is extremely important now since the control of carbon emissions is a pressing issue for both policymakers and firms. at this point, let me say that as you know very well, the last few years have been an incredibly challenging time for monetary policymakers. no one could have predicted the series of supply shocks that struck the euro area economy and therefore, no one could have predicted –

attach relatively little importance to the krona when assessing what would be a well - balanced monetary policy. this means that i instead place greater importance on the improved economic prospects. however, despite the fact that prospects now seem a little brighter, it is still the case that resource utilisation is expected to be significantly below normal over the next few years. this means that there is still a need for monetary policy stimulation to stabilise the real economy. nor does it appear that such stimulation will conflict with the inflation target. inflation measured in terms of the cpif is expected to be slightly below the target of 2 per cent in the next few years. all in all, there is therefore nothing at the moment that calls for a tightening of monetary policy at a faster rate than in our assessment in july. nor can i see, as economic activity has improved, any weighty reasons for making monetary policy more expansionary by reducing the repo rate even further. the adopted line, with a repo rate of 0. 25 per cent that is expected to remain unchanged for several quarters, represents a very expansionary monetary policy. my view is that this policy should only be changed if inflation and / or the economic situation change considerably compared to our current forecasts. concluding remarks i have now shared with you some of my experiences during my early months as a member of the executive board of the riksbank. i realised already when i accepted the job that it would not be easy. however, the fact that monetary policy decision - making is not as straightforward as it appears in theory only serves to make the job even more exciting. a well - balanced monetary policy presupposes that we arrive at a reasonable balance between achieving the inflation target and stabilising the real economy. a reasonable balance requires in turn that we can effectively measure how much inflation deviates from the target and how resource utilisation relates to its normal level. we have fairly good measures of inflation, although it has been a problem recently that our main measure of inflation, the cpi, is so highly affected by our own repo rate decisions through their effects on housing costs. consequently, at our most recent monetary policy meetings we have almost exclusively focused on alternative measures from which housing costs are excluded. the problems concerning how measures of resource utilisation relate to the normal level are, however, greater. it is difficult enough to measure resource utilisation, but it is even more difficult to measure what its normal level is. instead we