francois villeroy de galhau : looking up to achieve a financing union speech by mr francois villeroy de galhau, governor of the bank of france and chair of the board of directors of the bank for international settlements, at the eurofi high level seminar 2022, paris, 23 february 2022. * * * ladies and gentlemen, it is a great pleasure for me to open this edition of eurofi today in paris, and i extend my warmest thanks to didier cahen and david wright for their tireless efforts that allow us to gather in this beautiful hotel du collectionneur. today i will indeed be speaking about a collection – not of fine arts, but rather of national banking and financial systems. unfortunately, such a collection is nothing to rejoice about, it is rather an achilles heel. but let me start with a few words about ukraine. we are obviously monitoring closely the geopolitical developments, and their possible economic and financial implications. let me already stress that the direct exposure of french financial institutions to russia remains limited, but the ssm called all european banks to enhanced vigilance on cyber risks. we will assess in our governing council in march the more indirect consequences on inflation and growth, and we will be facts driven : more than ever, optionality – about the right monetary stance – and flexibility – to guarantee the right monetary transmission – are the two names of the game for our policy. a few days ago, on 7 february, we celebrated the thirtieth birthday of the european union and of the maastricht treaty. i was personally present during the signature of this treaty, which promoted “ the strengthening of economic and monetary union, ultimately including a single currency ”. we have successfully established a monetary eurosystem, however a real financial eurosystem must now develop. let me therefore share some proposals on the banking union and the capital markets union ( cmu ), which are the two cornerstones for such a financial eurosystem. we are all aware the banking union is for 19 countries, and tomorrow 21, while the cmu is for 27. but allow me to mix them today with a common core – the euro area – and a common purpose – the right funding of our economies. i will quote two thriller books today. you may rightly think of the postman always rings twice : andrea enria and myself already conveyed this message quite plainly regarding the banking union during the last eurofi session in september.

. 113 ( may ), pp. 394 – 400. 5 / 6 bis - central bankers'speeches vissing - jorgensen, annette ( 2019 ). " central banking with many voices : the communications arms race, " paper presented at the 23rd annual conference of the central bank of chile. woodford, michael ( 2005 ). " central bank communication and policy effectiveness ( pdf ), " in the greenspan era : lessons for the future, proceedings of a symposium sponsored by the federal reserve bank of kansas city, held in jackson hole, wyo., aug. 25 – 27. kansas city : federal reserve bank of kansas city, pp. 399 – 474. 1 the views expressed here are my own and are not necessarily those of my colleagues on the federal reserve board or the federal open market committee. 2 see, for example, goodfriend ( 1986 ) and cukierman and meltzer ( 1986 ). 3 lindsey ( 2003 ) provides an extensive account of the history of fomc communications from 1975 to 2002. 4 see orphanides and williams ( 2005 ), among many others. 5 the document containing the 2 percent inflation target, named the " statement on longer - run goals and monetary policy strategy, " also clarified that the committee would not set a quantitative target for maximum employment and stated that the committee would follow a " balanced approach " in promoting both sides of the dual mandate. 6 notable early studies include eggertsson and woodford ( 2003 ) and adam and billi ( 2006 ). 7 some recent contributions include acosta ( 2023 ), gardner and others ( 2022 ), and ehrmann and wabitsch ( 2022 ). 8 see swanson ( 2023 ) and jarocinski and karadi ( 2020 ). 9 this " cacophony problem " could be severe if policymakers actively tried to sway market expectations to align with their personal views ( vissing - jorgensen, 2019 ). 6 / 6 bis - central bankers'speeches