to set but rather in bringing existing rules and regulations into line with best practices, while giving due regard to a country ’ s specific circumstances. regional cooperation in building market infrastructure can also be an effective way of strengthening clearing and settlement systems. a regional central security depository that acts as a central access point to various domestic markets, providing multi - currency as well as delivery versus payment settlement, would be a possible alternative to a gradual expansion of cross - border links based on existing national systems. finally, in many emes, the securities clearing system is not keeping pace with the payments system in terms of its technological and legal development. improving the link between the payments system and the securities clearing system would be a major step in minimising transaction risks that occur when the buyer of a bond makes his payment days before the delivery of the bond takes place. the ultimate objective must be to accelerate settlement and to develop true delivery - versus - payment systems. it should also be mentioned that many of the existing barriers to an efficient clearing and settlement infrastructure relate to legal and regulatory issues. this underlines the need for close interaction between the private and public sectors. second, the legal framework : property rights and a tax system that is not overly complex or discriminatory are key factors in ensuring that markets are fair, efficient and transparent. a governance structure that enforces contracts and resolves disputes in a credible, speedy and predictable manner is vital for the development of sophisticated financial markets. given the problems of asymmetric information that are inherent in the financial sector, the regulatory framework should also set ambitious standards for auditing and accounting. disclosure rules that ensure the generation and dissemination of reliable information on a timely basis are particularly important. the oecd principles of good governance give appropriate guidance in this regard. let me emphasise that full implementation and enforcement of the corporate governance framework, information disclosure regulations and accounting and auditing standards and practices are as important as the laws and regulations themselves. third, the credit ratings : credit rating agencies play a major role in improving the price discovery process in bond markets, thereby furthering the growth of the corporate bond market. these agencies must be able to compile the necessary information to help investors assess credit risk and pricing spreads of corporate bonds. the rating standards of global agencies currently focus primarily on country risk. but they are less appropriate for evaluating the specific creditworthiness of particular firms in emes, which is a key ingredient for the development of corporate bond markets. there is an ongoing debate

generate “ disparate confounding dynamics ”. 1 since the services sector constitutes a large share of the overall price level and since wages ( adjusting for productivity ) are the principal component in the price of services, the persistent component in wage dynamics plays a central role in the determination of underlying inflation. accordingly, tracking wage outcomes and differentiating between transitory and persistent shifts in the growth rate of wages will play an important role in assessing progress in the realised path of underlying inflation. in particular, a one - off shift in the level of wages as part of the adjustment to a transitory unexpected increase in the price level does not imply a trend shift in the path of underlying inflation. moreover, in examining the implications of the current increase in energy prices, it is necessary to take into account the full macroeconomic implications of adverse external shocks and supply shocks in the energy sector, including the associated headwinds for the economic outlook and the negative wealth effect associated with a deterioration in the terms of trade. through these mechanisms, an energy price shock can simultaneously raise headline inflation but exert downward pressure on the path of underlying inflation. in addition to rate forward guidance, calibrating the volume of asset purchases also plays an important role in ensuring that the monetary stance is sufficiently accommodative to deliver the timely attainment of our medium - term two per cent target. in particular, the compression of term premia through the duration extraction channel plays a quantitatively - significant role in determining longer - term yields and ensuring that financing conditions are sufficiently supportive to be consistent with the delivery of our medium - term inflation objective. 2 in conclusion, in addition to learning from the research presented and discussed at this year ’ s event, i look forward to seeing how this year ’ s strategy review ( and our ongoing implementation of the strategy ) shapes the research that will be presented in future editions of this annual conference series. with that, let me offer my best wishes to all conference participants for an exciting two days. 1 see faust, j. and leeper, e. m. ( 2015 ), “ the myth of normal : the bumpy story of inflation and monetary policy, ” in inflation dynamics and monetary policy, federal reserve bank of kansas city, jackson hole, pp. 263 - 358. 2 see bernanke, b. ( 2020 ), “ the new tools of monetary policy ”, american economic review, vol. 110, no 4, pp. 943 - 983 ;