to firm types. we have worked hard, including through the meeting varied people initiative launched in 2021 [ 3 ], to broaden individual representation on the committee, and our market intelligence network, to ensure we benefit from the widest possible range of views and input. just as the customer base has broadened, the technology used to service it has fundamentally changed. the early minutes of the fxjsc are dominated by descriptions of detailed disputes that could only arise in a voice - execution market. however sophisticated chatgpt and the like may become, i am doubtful they could ever disentangle the misunderstandings of that era! at the same time, few members of the 1970s committees could have foreseen how the market would be revolutionised by the technology to come – from the early reuters terminals via the introduction of the internet, to today ’ s world of algorithms and vast automated market - making systems marshalling petabytes of data. today ’ s market structures have the capacity to meet consumer needs in ways undreamt of decades ago. but such decentralisation, dare i say fragmentation, also poses daunting challenges for the unwary, in terms of understanding where they can find the best liquidity, and on what terms. as the market structure gets more complex, transparency has never been more important. [ 4 ] part of the answer here lies in centralised data gathering : the fxjsc itself took an early initiative in the late 1980s to develop the first london market - wide survey, later globalised via the bis. bespoke technologies, including transaction cost analysis ( tca ) tools can also help. but this is an area that will need ongoing attention if we are to reap the potential gains from technological advances of recent years. the evolving toolkit for maintaining safety, soundness and financial stability my final theme relates to how central banks should think about the relationship between fx markets and financial stability. that relationship is not one - way of course : exchange rates, particularly floating ones, can be important buffers against unanticipated shocks, allowing economies to adjust without more painful corrections in less flexible domestic prices. but fx markets can still dry up in stress periods, particularly in the presence of material imbalances in currency demand. that is why the major central banks established a permanent network of standing swap lines in the wake of the global financial crisis. those swap lines proved vital in our fight against the global ‘ dash for cash ’ following the covid lock

unexpected. in this regard, important steps forward have been taken. since the beginning of the gradual reduction of monetary accommodation, one - year overnight index swaps have picked up from negative levels to 3. 3 per cent, while ten - year ones have gone from barely positive values up to 2. 6 per cent. in real terms, using index - linked swap rates as a deflator, the interest rates currently stand at about 0. 9 and 0. 3 per cent respectively, from around - 4 and - 2 per cent at end - 2021. monetary tightening can now continue with suitable caution and with careful consideration of the implications for the economy and for the inflation outlook of the measures already adopted as well as of the information on how they develop. in any case, it remains essential to continue to balance the risk of an excessively gradual recalibration, which could cause inflation to become entrenched in expectations and in wage - setting processes, with the risk of monetary conditions becoming too tight. this in turn would result in significant repercussions for economic activity, financial stability and, ultimately, medium - term price developments. as i have recently said, i believe equal weight should be assigned to both risks, in line with the symmetrical price stability objective which we must achieve to fulfil our mandate. however, price stability does not depend on monetary policy alone, but also on firms'business strategies, agreements on labour costs and fiscal policy. in order to bring inflation back to its target, it is crucial for representative of workers and employers in all euro - area economies to make responsible decisions, to ensure that price and wage dynamics remain consistent with preserving monetary stability. in real terms, wage growth is limited by the performance of productivity. especially in italy, where both productivity and real wages have stagnated for too long, the investments and the reforms envisaged under the national recovery and resilience plan will play a fundamental role in creating a more favourable business environment. price stability also requires that public finances be kept under control in all countries. balanced policies are required, not only to prevent demand from overheating and inflation from declining more slowly, but also to stave off the risks associated with a negative perception, even if not entirely warranted, of the sustainability of public finances. fiscal policies, through temporary and targeted measures, can certainly help ease the effects of inflation on the weakest sections of the population ; however, this should be done through a redistribution among income earn