held by them. the contagion effects stem from the far greater worries of investors about a slump in growth in china and its repercussions for the global demand of the people ’ s republic. nevertheless, as i see it, the price slump was not driven solely by the poorer outlook for the chinese economy. another key factor was speculation about when the united states would adjust its ultra - accommodative monetary policy with the first interest rate hike since 2007. these two topics were the subject of much discussion during the typically less busy trading days in august. the absence of many market participants led to less liquid and more volatile markets. these various factors can explain why the correction on the markets was so violent. the chinese government revised its growth forecast downwards compared with previous years to what is now 7 %. 1 this is much lower than the larger growth rates of past years. even so, i would like to put this supposedly bad news into perspective : china is now the secondlargest economy in the world. by virtue of its sheer size alone, this means that growth of 7 % today will leave a larger footprint on the global economy than, say, growth of 11 % did in 2005. imf forecast : 2015 6. 8 % ; 2016 6. 3 %. bis central bankers ’ speeches in addition, more moderate rates of growth are a typical consequence of the catching - up process of emerging market economies with rising per capita income. just to make it absolutely crystal clear what this supposedly small growth of 7 % means in terms of size, it should be considered that this is an increase which is roughly equivalent to the annual gross domestic product of switzerland. the lower rates on the road to a more balanced path of growth are accompanied by a departure, which was initiated some years ago, from a purely export - oriented economic model to one that is more consumer - oriented. this transformation can also be seen in the sectoral growth rates. the services sector, for example, now contributes a share of roughly 50 % to chinese gdp. the government itself describes the lower overall rates of growth as the “ new normal ”. the current slowdown in chinese economic activity has left a clear mark on the international financial markets recently. it is true that china ’ s economy, which takes up some 10 % of global goods imports, is very important. but retarding effects on resurgent activity in germany would be something to be concerned about only if there were to be a dramatic slump in the chinese

andreas dombret : in the heart of europe – europe in our hearts welcoming address by dr andreas dombret, member of the executive board of the deutsche bundesbank, to mark the unveiling of the plaque listing patrons for the euro sign, frankfurt am main, 4 february 2016. * 1. * * introduction ladies and gentlemen i am extremely pleased that you are joining me in celebrating a very special occasion today – the unveiling of the plaque listing patrons of the euro sculpture. when you think of frankfurt, what comes to mind? perhaps the city ’ s famous historical landmarks, such as the romer ( city hall ) or st. paul ’ s? or the skyline, featuring its many skyscrapers? football fans may think of attila, the eagle, worn proudly on players ’ shirts of eintracht frankfurt. you might also think of goethe, the old opera house, the main river, germany ’ s largest airport, and so on. all this is frankfurt ; our city is veritably full of worldrenowned landmarks. however, i ’ m sure that quite a few of us also have in our mind ’ s eye the euro sculpture, which has graced the willy - brandt - platz square between the opera house and the eurotower since the euro was launched – and is thus located right in the heart this city. much as frankfurt itself is located in the geographic heart of europe. 2. in the heart of europe for nearly 15 years, the euro sculpture stood guard before the european central bank, making it clear to all visitors that they were standing at the heart of europe. the sculpture has certainly seen a great deal in that time. when its lights came on for the first time in 2001, the euro area comprised only 12 member states ; the number has now risen to a total of 19. the average forex trading volume that changed hands every day between traders round the world amounted to some €450 billion in 2001 ; it now stands at €1. 7 trillion according to the latest available figures. the euro is undoubtedly the world ’ s second most important currency after the us dollar. yet it has not always been smooth sailing. we all remember the sometimes dramatic events in connection with the recent financial crisis, which dealt a significant blow to the euro area and, in some cases, raised massive doubts about the continued existence of our single currency. it was not least these events which also led to the activists of the occupy movement, in 2011