stability. more precisely, the eurosystem ’ s operational framework is characterised, first, by a large number of counterparties eligible for refinancing operations and marginal lending facility. this facilitates the direct provision of liquidity to a large number of banks in need of it, at a time when the money market is working imperfectly. second, the eurosystem accepts a wide range of collateral eligible for its refinancing operations. this has facilitated the raising of liquidity via the eurosystem for banks with reduced access to the interbank market, at the same time economising through their operations with the eurosystem on those few types of assets that have continued to be tradable throughout the turbulence, such as government bonds. in this respect, the framework may have also supported the continued functioning of capital markets. third, the large size of its refinancing operations ( around one third of total assets in the eurosystem balance sheet – or €450 billion ) has allowed the eurosystem to provide longer term refinancing to banks at a large scale, and at the same time to continue to adequately steer liquidity in the course of the maintenance period. 2. implications for central banks, financial regulators and supervisors at the level of the international community, we have adopted a methodology for responding to the present turmoil and working out what lessons can be drawn from the crisis : the fsf, created after the asian crisis, coordinates global efforts towards creating a more resilient financial system. by april 2008, the fsf had reached consensus on a set of 67 policy recommendations aimed at addressing the vulnerabilities identified in the global financial system. some of these recommendations concern structural changes and thus can only be implemented over the medium term. however, a number of priority areas calling for immediate action were identified and the relevant recommendations are already being implemented by the competent authorities and the industry. in this respect, a major priority area involves the disclosure of financial institutions ’ structured finance - related exposures and their valuation practices. many large global banks have already applied the methodology set out in the fsf report to their holdings of complex and illiquid instruments in their mid - year financial reports. by doing so, they have demonstrated the willingness of the private sector to contribute to strengthening market confidence by increasing transparency. i strongly support this development and believe that the example set by these banks should be followed by a wider range of institutions. furthermore, guidance on transparency has

, c. ( 2022 ), “ monetary policy in a high inflation environment : commitment and clarity ”, lecture organised by eesti pank and dedicated to professor ragnar nurkse, tallinn, 4 november. 2. this is visible, for example, if one compares the persistent and common component of inflation ( pcci ) and the pcci excluding energy. the former has been declining strongly since the summer of last year, whereas the pcci excluding energy has only stabilised. 3. for an explanation on different measures of underlying inflation, see ehrmann, m., ferrucci, g., lenza, m. and o ’ brien, d. ( 2018 ), “ measures of underlying inflation for the euro area ”, economic bulletin, issue 4, ecb and ecb ( 2021 ), “ inflation measurement and its assessment in the ecb ’ s monetary policy strategy review ” occasional paper series, no 265, september. 4. germany, france, italy, spain, the netherlands, austria and greece. 5. defined as those items in the core inflation basket for which wages account for more than 40 % of input costs. 6. according to the labour force survey, the labour force has increased by 2. 2 million since the start of last year and remains well above pre - pandemic levels, due to the rising participation of foreign workers ( + 1. 3 million ), women and older workers. 7. employment growth in the public sector has accounted for about half of total employment growth since the end of 2019. 8. kouvavas, o., osbat, c., reinelt, t. and vansteenkiste, i. ( 2021 ), “ markups and inflation cyclicality in the euro area ”, working paper series, no 2617, ecb. 9. however, the concentration of accumulated savings among higher - income households limits the extent to which this buffer can support the recovery in consumption, and the real value of excess savings has declined due to inflation. copyright 2023, european central bank