the federal open market committee ( fomc ) as a consumer of model - based forecasts and analysis suggests that work remains to be done on both fronts - - and, in particular, on meeting both objectives with the same model. as regards the first property, the conceptual - - albeit informal - - framework that many policymakers like to use is largely " bottom up " and features costs and expectations. it starts with wages and the prices of other inputs into production, and after taking into account productivity, it sees prices set as a markup over unit costs. wage determination plays a key role in this framework and is influenced by such factors as inflation expectations, productivity, the views i express here are my own and not necessarily those of other members of the federal open market committee. flint brayton and david reifschneider, of the board's staff, contributed to these remarks. 1 / 4 and labor market slack ; the markup, too, is important because it varies over time depending on changes in the competitive environment, expected future costs, and other factors. at first glance, the empirical structural models currently favored in academic research and discussed at this conference - - such as the new keynesian phillips curve - - appear to conform to the informal policymaker model : expectations formation is dealt with formally, and price inflation, at least in some empirical representations, is directly tied to measures of unit labor costs. on closer inspection, however, one sees that the specifications of these models typically ignore important factors bearing on the inflation outlook. one category of neglected factors is price shocks - - changes in the levels of key inputs, such as energy or imports. policymakers spend a great deal of time discussing the circumstances under which such shocks can lead to persistent changes in the rate of inflation. yet, despite their historical importance for aggregate inflation, energy prices, for example, are controlled for in only one of the structural models discussed at this conference. and this importance is not necessarily a concern of the past : prices for oil and natural gas have soared since 2003, directly boosting the energy component of the consumer price index as well as raising the production costs, and ultimately to at least some degree the prices, of non - energy goods and services. as a policymaker, i can assure you that any model of inflation that did not take account of these effects, and how they might or might not affect ongoing rates of inflation, would have been of little practical use to the fomc over the past

are exploring the extent to which financial institutions'transition plans should be considered within the supervisory toolkit and overall prudential framework. while most financial institutions'transition plans have a climate focus, they have different nuances in objectives, ranging from climate risk mitigation to reducing financed emissions to supporting the real economy's transition to net - zero. but there are some common elements to all transition plans which are relevant to supervisors for assessing safety and soundness. the ngfs has completed a stock - take of supervisory frameworks with respect to financial institutions'transition plans. we are sharing the results of the stock - take with the basel committee on banking supervision and the financial stability board, to facilitate greater coordination in the development of transition planning standards. we will publish a report on key findings and next steps that will provide a basis for further work on the role of transition plans in greening the financial system. the next phase of the ngfs'work will develop guidance on transition planning to cater to different supervisors'mandates, toolkits, and prudential frameworks. recognising that there is a spectrum of supervisory mandates, such guidance will be based on a building block approach to aid financial regulators with varying approaches in their review of financial institutions'transition plans or planning process. scaling blended finance to move the needle on global emissions, we need to facilitate the decarbonisation of emerging markets and developing economies. emerging markets and developing economies account for more than half of global greenhouse gas emissions. they are still heavily dependent on fossil fuels for their economic development and energy needs. their energy needs are expected to grow significantly in the coming years alongside economic growth and development. it is not right to hold back their economic growth. rather, we need transition finance to help decouple growth from emissions – through cleaner energy, greater energy efficiency, more electrification, and production processes with a lower carbon footprint. but emerging economies and developing countries face several challenges in mobilising the transition financing necessary for decarbonisation. first, they have fiscal constraints. public debt remains the main source of funding for transition in these economies. but there are tight limits to how much debt these governments can sustainably raise, especially in foreign currencies. 3 / 5 bis - central bankers'speeches second, they have limited access to private capital. they lack depth in their domestic capital markets ; they lack large corporations, and a broad investor base. third, many of their transition projects are only marginally bankable