derville rowland : global factors shaping asset management remarks by ms derville rowland, deputy governor of the central bank of ireland, at the irish funds annual global funds conference, dublin, 23 may 2024. * * * good morning, thank you to irish funds for the invitation to address your annual conference. it is always a pleasure to have the opportunity to attend your events and hear the perspective of the funds and asset management industry. yours is truly a global industry. so let me give you some perspectives of the global factors shaping asset management at the moment. economic activity was surprisingly resilient through 2022 to 2023 and recent global growth forecasts have been revised upwards. 1 near term financial stability risks have also receded as disinflation is entering its so - called " last mile ". we need to all remain watchful for strains in the cre market, stalling disinflation and looking to the medium term - the build - up of debt in public and private sectors. 2 recent imf reports also suggest that medium - term global growth prospects remain weak. turning closer to home, euro area financial stability conditions have improved as recession risks decline. 3 in a european policy context, change also continues - we have seen political agreement reached on the eu's artificial intelligence act and on proposals around the eu's antimoney laundering ( aml ) package. the revised eltif regulation has entered into application, with the first irish eltifs subsequently being authorised. in the face of the many challenges the eu faces, there has been an emphasis on eu competiveness, a renewed focus on progressing capital markets union. and climate issues remain a perennial, pertinent and persistent backdrop to both policy and risk discussions. how people, politics and institutions respond to these changes will very much be shaped by major events like the forthcoming european parliament elections and the formation of the new agenda for the next european commission. that agenda will of course continue to be shaped by the prevailing themes of ever increasing interaction and strategic autonomy, which will raise important issues in the context of the funds sector, including evaluating eu - level supervision and reliance on third countries. while there are many uncertainties about the future, there are many things which are known. we know that economic growth in the european union has remained low since the 2008 global financial crisis. while the eu has responded well to crises such as the covid - 19 pandemic, the war in ukraine and resulting energy crisis,

central government. monetary policy cannot persistently affect these preferences. it can however provide a stable backdrop against which individuals and businesses can make decisions about the most efficient allocation of their resources. references acemoglu, d, s johnson, j robinson ( 2004 ) “ institutions as the fundamental cause of longrun growth ”, nber working paper 10481. barro, r ( 1995 ) “ inflation and economic growth ”, nber working paper 5326. boulhol, h, a de serres and m molnar ( 2008 ) “ the contribution of economic geography to gdp per capita ” oecd economics department working paper 2008 / 10. bruno, r and w easterly ( 1998 ) “ inflation crises and long - run growth ”, journal of monetary economics 41, 3 – 26. de serres, a, n yashiro and h boulhol ( 2014 ) “ an international perspective on the new zealand productivity paradox ”, new zealand productivity commission working paper 2014 / 01. graham, j and c smith ( 2012 ) “ a brief history of monetary policy objectives and independence in new zealand ”, rbnz bulletin 75 ( 1 ), 28 – 37. khan, m s and a s senhadji ( 2001 ) “ threshold effects in the relationship between inflation and growth ” imf staff papers 48 ( 1 ). smith, c ( 2004 ) “ the long - run effects of monetary policy on output growth ”, rbnz bulletin 67 ( 3 ), 6 – 18. khan and senhadji ( 2001 ). a caveat to these results is that this and other such empirical work uses a relatively short period of modern experience in attempting to identify effects on long term growth. bis central bankers ’ speeches