of rules is calibrated in a way that avoids excessive market liquidity distortions, in particular in those market segments whose functionality is still partially impaired as a consequence of the market disruptions that we have witnessed over recent years. with this in mind, the ecb explicitly welcomes private sector initiatives such as the afme framework for post trade transparency, which i believe is a constructive proposal because it aims to fine - tune the reporting requirements across different liquidity categories, something that is certainly a sensible approach given the economic trade - off i have just outlined. concluding remarks so, i will now conclude my keynote address, and i look forward to participating in what i am sure will be an interesting panel discussion. de frutos, m - a. and manzano, c., “ trade disclosure and price dispersion ”, journal of financial markets, vol. 8, no 2. pp. 183 – 216. see goldstein, m., hotchkiss, e. and sirri, e., “ transparency and liquidity : a controlled experiment on corporate bonds ”, the review of financial studies, vol. 20, no 2, pp. 235 - 273, and edwards a., harris, l. and piwowar, m., “ corporate bond market transaction costs and transparency ”, the journal of finance, vol. 62, no 3, pp. 1421 – 1451. see naik, n., neuberger, a. and viswanathan, s., “ trade disclosure regulation in markets with negotiated trades ”, the review of financial studies, vol. 12, no 4, pp. 873 – 900. bis central bankers ’ speeches

domestique. le role de la structure des echanges ». first, a natural process of real appreciation of currencies in catching - up economies is taking place, leading to upward pressures on the prices of their imports. along with the catching - up in terms of standard of living, the level of prices in emerging countries tends to converge to the level of advanced countries through a combination of appreciating currency and higher inflation. although somewhat hampered by exchange rate policies in the past decade, it seems to gather speed now with, as an example, the most needed faster appreciation of the renmibi and at the same time accelerating inflation in china. this process will affect import prices of manufactured goods in developed economies. second, the growth of emerging market economies and the rise in the living standards of their populations are also leading to a surge in the demand for natural resources, food and energy, which logically has a strong and permanent impact on inflation. furthermore, by strengthening the magnitude of global shocks in relation to more specifically domestic shocks and favouring the international transmission of the latter, globalisation introduces a much greater synchronisation of inflationary cycles between countries, with the ensuing risks of amplification. overall, the effects of globalisation have ceased – probably in the long term – to be spontaneously disinflationary. other factors will add to the inflationary pressures in the medium to long run. without elaborating too long on them today, i want to mention in particular population ageing and climate change. the ageing of the population will lead to a significant increase in public spending, for retirement pensions and health expenditure. at the same time, the growth in public indebtedness during the past twenty years will require an adjustment at some point. both issues will lead to a mix of economic policy decisions and there may be a conflict between firms and employees about the final burden sharing, with risks of a wage - inflation spiral. climate change could also have both a direct impact on prices, through disruptions in production, and an indirect impact, through policy measures to curb down carbon dioxide emissions. climate change, through unusual weather outcome – temperature, rain or unusual seasonality – or disasters, would disturb climate sensitive productions such as food products or electricity ( e. g. hydroelectric energy ). scarcity of these products would then lead to temporary overshooting in their prices. measures to curb down carbon dioxide emissions will have a direct impact on prices through increases of