is the most important contribution the federal reserve can make to the global economy, and that this is precisely the focus of monetary policy in this country. 10 they have also stressed the need for effective communication to limit the risk of surprises and the possibility of abrupt market responses. i have no quarrel with these arguments, and i believe there is widespread recognition of the major efforts undertaken by the fed to increase transparency and communication in recent years. however, i see room for further action from advanced economies in at least three areas. first, unconventional monetary policies, though fundamental to overcome the global financial crisis and underpin the recovery of demand in recent years, provide only a temporary stimulus to economic activity. ensuring adequate and sustained rates of growth implies the adoption of measures focused on enhancing efficiency and productivity that go well beyond the reach of monetary policy. indeed, there is a lot that advanced economies still need to do to meet these needs. second, actions taken by major central banks have important consequences for other economies which deserve careful consideration. yet, an adequate understanding of such spillovers is still lacking. although literature on the subject is scant and definitive conclusions are difficult to arrive at, to have an idea of the challenges we are facing, it may be useful to note that recent research carried out at the bis concludes that us quantitative easing has see, among others, sahay, r. et al. ( 2014 ) : “ emerging market volatility : lessons from the taper tantrum ”, imf staff discussion note no. 14 / 09, september ; world bank ( 2015 ) : “ hoping for the best, preparing for the worst : risks around u. s. rate liftoff and policy options ”, special feature 1 in global economic prospects, june ; eichengreen, barry and poonam gupta ( 2014 ) : “ tapering talk : the impact of expectations of reduced federal reserve security purchases on emerging markets ”, policy research working paper no. 6754, the world bank, january ; and international monetary fund ( 2013 ) : “ taper talks : what to expect when the united states is tightening ”, box 1. 1 in world economic outlook, october. see for instance dudley, william, op. cit. and fischer, stanley ( 2015 ) : “ the federal reserve and the global economy ”, remarks at the conference held in honor of professor haim ben - shahar, tel aviv, israel, 26 may. bis central bankers ’ speeches had a greater impact on emerging market

manuel sanchez : the european union ten years after the euro zone crisis remarks by mr manuel sanchez, deputy governor of the bank of mexico, at the national bank of poland conference on “ the future of the european economy ”, warsaw, 18 october 2012. * * * i am pleased to be with you today in the culturally vibrant city of warsaw, and to be a participant in this conference on the timely and important topic of the future of the european economy. i would like to thank president marek belka and the national bank of poland for the invitation to share my thoughts with you. the process of integration in europe has been long and quite remarkable, reflecting strong leadership and social consensus in favor of unity and cooperation. the process can also be considered an economic success on the basis of the expansion of trade, investment, and growth resulting from the reduction of barriers to international transactions. furthermore, the current stage of economic and monetary union in the eu shows additional economic benefits accruing to its members as a result of the elimination of transaction costs related to currency exchange in the area, the efforts by member countries to comply with the convergence criteria, and the price stability attained. notwithstanding this progress, the ongoing crisis has revealed crucial deficiencies in the design and operation of the emu, engendering prolonged financial instability and casting doubts on its viability. the identified weaknesses have called for policy measures whose effectiveness will, to a large extent, determine the future of the monetary union. given the importance of the emu to the eu, in what follows, i will focus my comments on what i believe are the key policy issues in the euro zone, the opportunities for the central and eastern european countries, and the impact on the world economy. as always, my comments are my own responsibility and do not necessarily reflect the views of the bank of mexico or its governing board. policy challenges and the future of the emu one of the most urgent policy tasks in the emu is the end of the negative feedback loop between unsustainable public - debt paths and the weak conditions in the banking system prevailing in many countries. to this end, fragile banks must be recapitalized by the private sector which, exceptionally, may imply supplementary backing by corresponding national governments. such a step requires an assessment of the “ true value ” of public - sector debt on the banks ’ balance sheets. efforts towards fiscal consolidation demand, in many instances, substantial corrections of primary deficits that have resulted from previous stimulus measures, automatic stabilization