ignazio visco : “ doing business in a fragmented world ” keynote speech by mr ignazio visco, governor of the bank of italy, at the launch of the oecd business and finance outlook and high - level roundtable “ doing business in a fragmented world ”, paris, 9 june 2016. * * * i first wish to thank the secretary general for his kind invitation to me to be here today. as a general comment, let me say that this second issue of the business and finance outlook confirms its character compared with other long - standing reports. it provides valuable in - depth analysis of many topical themes that are critical for a better understanding of the current dismal outlook of the world economy. i find particularly interesting the relationship between corporate finance and productivity, the role of r & d expenditure, the issue of stock market fragmentation, and the implications of heterogeneity of life expectancy across socioeconomic groups. the multifaceted dimensions of the cross - cutting theme of fragmentation are investigated thoroughly. the analyses are backed by rich and original information. for all of these reasons, i wish to congratulate the oecd for this very interesting document. i would like to offer some remarks on a few topics that caught my attention most greatly. admittedly, this selection was not easy, given the abundance of issues and findings. the report singles out two headwinds to global growth : the reversal of the commodity supercycle, against a backdrop of excess supply capacity and high corporate debt in some emerging market economies ( emes ) ; and the still modest recovery in advanced economies, associated with two key legacies of the crisis, deleveraging and high non - performing loans. on the policy front, the main challenge identified by the report remains – unsurprisingly – the same as one year ago : how to revive firms ’ appetite for economic risk - taking – the entrepreneurs ’ “ animal spirits ” that drive long - term investment projects – so as to fill the gap with financial risk - taking, stimulated by strongly expansionary monetary policies. according to the report, what is needed is a phase of “ creative destruction ”, characterised by a reallocation of resources towards productivity - enhancing investment and a reduction of excess capacity in sectors such as energy and materials. structural reforms are seen as the key policy measures with which to accompany this process in both advanced and emes. as a result, global growth would accelerate and monetary policy would normalise “ safely

assess the potential systemic spillovers from different private loss absorption requirements in real - life cases is necessary to guide the decisions of resolution authorities. more generally, how different approaches to loss absorption in the resolution of failing banks affect ( and are affected by ) the degree of sustainability of public finances is a subject that should be further investigated. as i have said, i expect that the contributions of the papers presented in the bank resolution session and the policy panel that will conclude the conference will provide useful and meaningful grounds to discuss these issues. to conclude, the post - crisis regulatory overhaul that has de jure or de facto provided central banks with a new or a renewed financial stability mandate is here to stay. high quality research, both theoretical and empirical, and fora like this conference, in which recent experiences and new ideas are exchanged in an open minded atmosphere, speed up the pace at which policymakers can learn how to most effectively fulfill such financial stability mandates. with this expectation, i wish all the participants in this conference two very constructive days of open discussion and fruitful exchanges. designed by the printing and publishing division of the bank of italy