that so many central banks are represented here today bears witness to our commitment to continue producing high - quality research, share its results and keep interactions and intellectual spillovers alive. it is extremely unfortunate that this edition of the workshop will only allow for “ virtual ” interaction, without the social networking and informal conversations that animate in - person meetings. i hope, however, that this will be one time in which, contrary to a well - known empirical finding, intellectual spillover effects will not decay with spatial distance, but rather will prove to be as rich as ever. i therefore wish all the participants in this workshop two very constructive days of open discussions and fruitful exchanges. 3 / 3 bis central bankers'speeches

ignazio visco : welcome address - “ research cluster 2 ” welcome address by mr ignazio visco, governor of the bank of italy, at the fourth annual workshop escb “ research cluster 2 ”, online conference, 23 november 2020. * * * it is my pleasure to open this fourth workshop of the “ research cluster 2 ”, which every year brings together economists working in the european system of central banks in the fields of international economics, fiscal policy, labour economics, competitiveness and governance of the european monetary union. research clusters were introduced three years ago with the purpose of fostering interactions and collaboration among economists based in national central banks and the ecb. this welcome initiative helps to spur an increasing number of joint studies, encouraging the development of a common view of the problems affecting our economies. if fostering interactions among researchers is important in normal times, it is all the more important in times of crisis and uncertainty, when decision - making processes strongly need timely and high - quality studies, which can benefit from broader cross - country perspectives. today, with the diffusion of covid - 19, we are unfortunately living through one of the worst such periods in our lifetime. the impact of the pandemic on our societies and economies has been unlike anything we have experienced in recent memory. its human and social costs are continuing to mount, with almost 60 million cases confirmed globally and 1. 4 million deaths officially registered. in early october the imf estimated that world gdp would fall by 4. 4 per cent this year, a severe contraction that, in the case of europe, nearly doubles in magnitude. these estimates do not incorporate the effects of the resurgence of the virus and of the measures put into place to address it. recent news on vaccine development offer reason for cautious optimism, but it will take time until widespread immunity is achieved. the outlook remains largely dependent on the evolution of the health crisis, which is likely to continue to weigh on global economic activity well into the next year. the response of central banks, supervisory authorities and governments in the majority of countries has been extraordinary since the early stages of the crisis. central banks have implemented a wide array of instruments, including new asset purchase programmes and liquidity facilities, to make monetary conditions more expansionary, counter the tensions in financial markets and support the essential provision of credit to households and firms. the response of governments has also been vigorous. in europe, in particular, the budgetary plans designed to repair the economic and social damage brought