chains. a shock in one country can disrupt the entire supply chain, especially as countries nowadays rely more on just - in - time delivery and therefore hold lower inventory stocks. hence, the virus could give further impetus to the recent trend of deglobalisation. although i am certainly not supportive of some of the protectionist drivers of this trend, it is not inconceivable that companies will reconsider their dependence on one specific supplier or country and diversify or even re - shore their production process. notably, a trend of reshoring was already triggered before the coronavirus due to digitalisation, as this enables companies to reduce the costs of producing at home. for critical products it is likely, and perhaps even desirable, that companies will keep larger stocks or increase domestic production capacity going forward. in addition, authorities may engage in policy measures that have an impact on global value chains. for example, the japanese government has already reserved the equivalent of 2 billion euros to encourage companies to bring back production to their own country and reduce their reliance on supply chains. if sustained such measures could have a long - lasting impact on global trade and, hence, global economic activity. reflections for monetary policy clearly, all phases that i have outlined also come with important policy challenges for central banks. as discussed, in the preservation phase, the brief for monetary policy is fairly straightforward. our policy is directed at maintaining favourable financing conditions for households, firms and governments, to mitigate any amplification of the ‘ corona shock ’ through financial channels. however, the challenge does not stop there. monetary policy will likely need to continue to play an important role in the recovery phase. private sector activity is expected to recover only gradually. not only because restrictions will be removed slowly. but also because economic uncertainty is likely to fout! onbekende naam voor documenteigenschap. linger as long as a vaccine is not yet available and the possibility of a renewed lockdown remains. the negative effects of the virus outbreak on aggregate demand might thus be quite persistent. simultaneously however, firms will need to adjust production processes and business models to a 1. 5 meter economy, which will have an effect on productivity and perhaps also on wage and price formation. this, together with the potential slicing up of global value chains, amounts to the negative supply shock i alluded to. as of yet, it remains unclear whether demand or supply effects of the corona - outbreak will dominate. the effects of the

the case of sustainability, i would go one step further. it may be the only future we have. and certainly the only future for our children. if we want to continue our high standard - of - living, we genuinely need to integrate sustainability into all aspects of our life. this also holds true for the financial sector. all finance shall become sustainable, or there shall be no finance. and fighting illicit financial flows is also one of the main building blocks for a positive future. we need to contain the size of the black economy. this is drastically needed, to defend the rule of law and democracy on which our societies are based. to put it plainly, we need to pump the dirty money out and pump the green money in! thank you. * * *