over the past few years, we have started to see this happen : with their large populations and extensive resources, these countries are developing rapidly and catching up rapidly. as a result of these economies entering into the world market, there have already been periods during which they have fostered disinflation, i. e. very low or falling prices of manufactured goods, which have then been followed by periods where they have triggered inflation through energy and commodity price increases. this of course has a strong, as well as complex, influence on monetary policy. the same applies to the second challenge of scientific and technological progress : a significant increase in productivity triggered by the advent of new technologies means that costs and prices change in the economy, as does the assessment of inflation risks by the central bank. the third challenge is the ageing population. because price stability is particularly important for pensioners? that ’ s not what i mean. we have to ensure price stability in line with our definition of price stability in every situation. however, monetary policy must take into account the fact that the age structure of a population influences savings and investments, and thus is an important factor for real interest rates in any given economy. this has to be taken into account by monetary policy and this is why intensive research into these issues is being conducted at universities and central banks. the fourth and final challenge for central banks is the fragility of the financial system which has come to light during the present financial crisis. this calls for all appropriate lessons to be learned without any complacency. and the two ecb - specific challenges? the fifth challenge is that the single market with its single currency is not yet achieved. we are still significantly changing the structure of our own euro area economy. unlike elsewhere, a look into the euro area ’ s past provides hardly any indications for the future. and the sixth challenge for the ecb is enlargement. we are currently 15 members, soon to be 16, but the treaty stipulates that we must be ready to be 25 one day and we have to manage this historic enlargement process in the most professional and successful way possible. how is the ecb preparing itself for these challenges? excellent staff! both at the ecb and in all national central banks of the eurosystem – in germany at the deutsche bundesbank. there is the feeling that we are all working together on a task of historic proportions. the world in which we are living is changing very rapidly, requiring

philipp hildebrand : developments in the current financial crisis summary of a speech by mr philipp hildebrand, vice - chairman of the governing board of the swiss national bank, at the swiss funds and asset management forum, berne, 2 april 2009. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). * * * the financial market turbulence, which began some 20 months ago, has grown into the largest and most complex crisis since the 1930s. the real world economy is now feeling the full force of this financial crisis. we are currently experiencing a very difficult period, although there are a few signs that the global economy could possibly be close to the cyclical trough. however, the route to recovery is unlikely to be straightforward, and the downside risks to growth remain considerable. throughout the world, governments and central banks have taken steps to stabilise the financial system. in addition, a large number of countries are pursuing fiscal policies aimed at stimulating demand. central banks have lowered interest rates rapidly and sharply, and, in some cases, taken exceptionally far - reaching measures to alleviate the economic downturn. cumulatively, these measures will ultimately help to ensure that the global economy returns to a growth path. the swiss national bank ( snb ), too, has made decisive use of conventional monetary policy tools and innovative, far - reaching monetary policy measures. we will deploy these measures aggressively for as long as this remains appropriate, both within the context of our monetary policy strategy and with a view to our inflation forecast. we are aware that long - term risks are associated with the option we have chosen for fighting this crisis. yet the snb is profoundly convinced that the risks associated with the option of “ doing too little ”, let alone the option of “ doing nothing ”, would have been far greater. as soon as a return of the swiss economy to its long - term growth path can be foreseen, the snb will certainly not hesitate to redirect its monetary policy accordingly.