proceedings 75 ( 2 ). 412. see ibid., p. 412. see holzmann, r. and m. t. valderrama. 2021. raising r * : why, how and if not now, when? suerf policy note 253. 1 – 9. it is unclear, for example, whether r * is best approximated by the real returns on government bonds or rather by the real returns on private capital. see reis, r. 2022. which r - star, public bonds or private investment? measurement and policy implications. working paper. 1 – 48. see bergeaud, a., g. cette and r. lecat. 2019. the circular relationship between productivity growth and real interest rates. banque de france working paper 734. 1 – 39 ; jorda, o., s. r. singh and a. m. taylor. 2020. the long - run effects of monetary policy. nber working paper 26666. 1 – 72. equilibrium real interest rate with the right economic policies. available estimates indicate a major decline of r * across regions of the global north and particularly low values for europe. a low or negative r * is a key reason for deploying ump, be it negative policy rates, quantitative easing or funding for lending schemes. as i argued earlier in my lecture, the accommodative monetary policy stance that comes with ump can produce severe side effects. thus, as economic policymakers, we may have an interest in sustainably moving away from ump by raising r *. alternatively, and i think this might be the more sensible option, the endogeneity of r * makes it possible to actively use nonmonetary, structural policies to initiate a strong rise in r *. in my view, the most important levers for achieving this end are policies that boost productivity, that increase the labor force participation of the elderly to compensate for population aging, and that reduce the savings glut in the global north by transfers for productive investments toward the global south. for example, a broadly conceived and effective green agenda would offer new opportunities for all three channels. hence, altogether, we can perhaps read alexandre lamfalussy ’ s nostalgia for schumpeter as a very early expression of skepticism as regards too simplistic equilibrium thinking in macroeconomics. in any case, mr. lamfalussy ’ s musings may serve as a wake

as they have been19 – are not enough : effective and efficient capital markets require capitalists. in modern democracies, deep and liquid capital markets are best achieved through see european central bank. 2011. approaches to monetary policy revisited – lessons from the crisis. sixth ecb central banking conference, 18 - 19 november 2010. conference proceedings. 168 – 173. see e. g. cœure, b. 2019. heterogeneity and the ecb ’ s monetary policy. speech at the banque de france symposium & 34th suerf colloquium on the occasion of the 20th anniversary of the euro on “ the euro area : staying the course through uncertainties ”, paris, 29 march 2019 ; and references therein. see bayoumi, t. and b. eichengreen. 1993. shocking aspects of european monetary integration, in : torres, f. and f. giavazzi ( eds. ). 1993. adjustment and growth in the european monetary union. cambridge : cambridge university press. 193 – 235 ; o ’ rourke, k. and a. taylor. 2013. cross of euros. journal of economic perspectives 27 ( 3 ). 167 – 192. see lamfalussy, a. 2001. reflections on the regulation of european security markets. suerf study 14. extended version of the annual suerf lecture given by professor lamfalussy at the bank of england on may 3, 2001. 11. see holzmann, r. and a. restoy ( eds. ). 2022. central banks and supervisory architecture in europe – lessons from crises in the 21st century. cheltenham, uk & northampton, usa : edward elgar. savings motivations that are common to all individuals over their life cycle – housing ownership and retirement financing – and the related market institutions. in fact, my own previous work argues that private pension funds can provide a particularly important impetus in this context if and when the right reforms are enacted and the right institutions are created. 20 let me now turn to the second revolving theme that caught my attention. i stumbled upon a fascinating passage in one of mr. lamfalussy ’ s articles published in 1985, just before he took over as general manager of the bank for international settlements. there he noted his “ nostalgia for one of schumpeter's main themes, namely that economic analysis should concern itself with the process of change, with its succession of cumulative or compensating imbalances,