, saving has increased substantially. the second trend is an increase in economic inequality. the impact of the pandemic appears to be uneven and regressive, as the negative impact has been more tilted toward low - income earners and young workers. there are therefore concerns over an increase in income and wealth inequality. the third trend is an increase in debt. be it public or private, borrowing is essential to smooth economic activity and to mitigate the negative impact of the pandemic. as a result of the necessary response to tackle the pandemic, debt has been mounting in many countries. the trio of increased saving, inequality, and debt is considered to be intertwined in practice and may theoretically reduce the natural interest rate. academic research on this topic is already underway. further research and discussion is to be encouraged to promote our understanding of the new economy that will emerge after the recovery from the health crisis. b. structural change 1 / 3 bis central bankers'speeches besides these three trends, another important area to consider when we look at the postpandemic economy is the underlying structural changes emerging in technology and industry and the accompanying changes in the behavior of households and firms. perhaps the most important change we have seen during the health crisis is the wide and rapid spread of digitalization. many areas of the economy have been affected by the shift from in - person to online activities. while the movement of people across national borders has almost completely stopped, digital technology has removed geographical restrictions and eased the potential economic downturn caused by the health crisis. new businesses that use digital technology have been emerging in a wide range of areas. looking ahead, the important point is whether these structural changes lead to a wide - spread increase in productivity in the economy, and whether the fruits of growth are widely shared throughout the society. advances in digitalization are expected to enhance productivity and benefit a wide range of individuals and firms by promoting innovation and efficient resource allocation. on the other hand, it is necessary to pay attention to the possibility that, if the fruits of growth are concentrated in a small fraction of society and inequality increases, it may be difficult to achieve inclusive economic growth. iii. policy challenges next, i would like to review the policy challenges facing central banks. there are two features common to the policy responses implemented during the pandemic. the first feature is the speed of the policy responses. major central banks immediately provided massive amounts of liquidity in response to the dislocations in domestic and foreign financial

to the online format of this conference that i am able to welcome you all together today. of course, there are two sides to any new technology, both positive and negative, and we cannot ignore the importance of the kind of exchange that can only come through face - to - face communication. in that respect, i do feel a certain ambivalence toward digital technology. and yet, even after we have overcome the pandemic, a full return to the less digital pre - pandemic world seems unlikely. society has undergone irreversible change as it has adapted to the pandemic by expanding and accelerating digitalization. by building on our discoveries and experience during this health crisis, we should forge ahead and shape the new society and economy — the new normal. v. conclusion over the past 15 years, we have been through two global crises : the financial crisis and the health crisis. in addressing these two crises, cooperation among central banks, international institutions, and academia has deepened further, and the theory and practice of economic policies have evolved. in the current crisis, academic disciplines, including economics, have made a significant contribution. cross - discipline approaches are providing timely policy suggestions, as, for example, through joint research in epidemiology and economics, or the use of digital technology to analyze mobility data. we are beginning to see the light at the end of this pandemic tunnel, but the light does not clearly reveal the shape of the society and economy we are approaching. therefore, the theme of our conference, “ perspectives and policy challenges after the covid - 19 pandemic, ” is going to cover a wide range of issues. given the considerable uncertainty we face, it is only natural that we will have different views on the relative importance of the issues involved and the direction our discussions should take. for the time being, we do not have to agree on all the details ; the important thing is for participants from central banks, international institutions, and academia to present their views and share their ideas. although we have only a few hours today and tomorrow, it is very encouraging to be able to welcome representatives from various institutions and from academia to participate in these discussions. i look forward to hearing a broad spectrum of views and insights into the post - pandemic economy and policies. thank you. 3 / 3 bis central bankers'speeches