christine lagarde : hearing at the committee on economic and monetary affairs of the european parliament introductory statement ( via videoconference ) by ms christine lagarde, president of the european central bank, before the hearing at the committee on economic and monetary affairs of the european parliament, frankfurt am main, 18 march 2021. * * * madam chair, honourable members of the economic and monetary affairs committee, ladies and gentlemen, it is a pleasure to be with you again today for the third regular hearing of the year. in my confirmatory hearing before this committee back in september 2019, i set out a goal : to ensure that the ecb engaged in a reflection on whether its monetary policy framework was sufficiently robust to meet future challenges. 1 with the successful conclusion of our strategy review in july, 2 i believe we have achieved that goal. the review took the ecb ’ s mandate and primary objective of price stability, which is conferred by the treaty, as a given. at the same time, we thoroughly looked at key aspects of citizens ’ lives. we have recommended a roadmap to include the costs of owner - occupied housing in the harmonised index of consumer prices to better represent the inflation rate that is relevant for households. we have also developed a climate - related action plan to address the profound implications of climate change for price stability. finally, we have modernised our external communication to make it more understandable to all citizens. the review has been an 18 - month - long journey involving an immense collective effort by staff across the eurosystem, and i am particularly happy that this work has now been published in 18 occasional papers which were made available to the public on our website last week. 3 i would also like to reiterate my gratitude to this committee for the important input it provided during the strategy review process. in my remarks today, i will outline some of the key elements of our new strategy and provide an update on the outlook for the economy and for inflation, together with some reflections on our current monetary policy stance. then, at the explicit request of this committee, i will discuss the topic of financial dominance. the ecb ’ s new monetary policy strategy in practice starting with our price stability objective, the new strategy incorporates two key innovations. first, we have adopted what i would call a simple and clear symmetric inflation target of two per cent over the medium term. it is simple, easy to communicate and clear because it gives a welldefined yardstick to help us

christine lagarde : welcome address - ecb conference on monetary policy welcome address by ms christine lagarde, president of the european central bank, at the european central bank conference on monetary policy : bridging science and practice, frankfurt am main, 4 october 2023. * * * it is my pleasure to welcome you all to the 2023 ecb conference on monetary policy. the last few years have been an incredibly challenging time for monetary policymakers around the world. we have faced a succession of overlapping supply and demand shocks that have created a complex and fast - changing macroeconomic landscape. and as a result, we have seen a paradigm shift in monetary policymaking. where central banks in advanced economies once wrestled with overcoming the lower bound on interest rates, they have more recently been engaging in the fastest hiking cycle on record. but policymaking, by nature, operates in real time. we make decisions based on the best analysis and data at hand. however, it is exactly when rapid shifts in the macroeconomic environment occur that prior, unforeseen knowledge gaps are suddenly exposed. this is why policymakers – who are practitioners at heart – can benefit greatly from cutting - edge research. fresh insights and innovative approaches can go a long way in closing those knowledge gaps, helping policymakers to navigate this new terrain more effectively. that is why this conference is called " bridging science and practice " – because the issues we are discussing are truly those that are informing our policymaking. today's event captures four such topics. the first topic is how the transition from the low inflation regime, which prevailed before the pandemic, to the high inflation rates we are seeing today affected the pass - through of shocks. the papers to be presented over the next two days provide important contributions to that important debate. in particular, we will see evidence that the propagation of adverse supply shocks is nonlinear : when inflation is high, the propagation is stronger. and we will see how firms'pricing strategies can become state - dependent and make prices more flexible in response to large shocks. 1 / 3 bis - central bankers'speeches the second topic on which the conference focuses follows naturally from the first. with such a rapid shift in the inflation outlook, there has been an equally rapid shift in the stance of monetary policy. and this has raised questions about how best to calibrate policy when accommodation must be quickly withdrawn after a long phase of loosening. we will see research that highlights some of the challenges