introductory statement speech at the virtual club evening of the international club of frankfurt economic journalists 31. 03. 2021 | virtual | jens weidmann de 1 introduction 2 current monetary policy 3 economic activity, price outlook and inﬂationary risks 1 introduction dear club members, a very good evening to you all. i look forward to a stimulating exchange of views with you today. if circumstances were different, i would be welcoming you in person to the bundesbank just like i did at our past gatherings. what ’ s preventing me from doing so this year ﬁts in here. a mathematician from the uk recently calculated the total volume of sars - cov - 2, and found that all the coronavirus of this type – the kind that ’ s plaguing humanity right now – could ﬁt inside a single softdrink can. the global crisis unleashed by this tiny virus has hung over our day - to - day lives for more than a year now. 2 current monetary policy since then, monetary policy, too, has been in crisis mode. [ 2 ] the early days of the pandemic in particular saw signiﬁcant uncertainty materialise in ﬁnancial markets. it was crucial, in that initial phase, to ensure that banks were still able to supply credit. the aim for monetary policymakers was to avoid a situation where normally sound businesses run into payment [UNK] just because banks spooked by the crisis cut back on their lending. adverse feedback loops between the ﬁnancial system and the real economy might otherwise have contributed to a downward spiral and perhaps jeopardised price stability. the governing council of the ecb consequently acted rapidly and resolutely at the beginning of the pandemic by rolling out a range of non - standard measures. chief among these measures were exceptionally favourable long - term ﬁnancing operations for banks and the pandemic emergency purchase programme, or pepp for short. the governing council tweaked its monetary policy a number of times as the crisis unfolded as the economic slump brought on by the pandemic dampened price pressures, which made it necessary to ease the monetary policy stance further still. last december saw the governing council explicitly link asset purchases under the pepp to the objective of preserving favourable ﬁnancing conditions, thereby supporting the ﬂow of credit to all sectors of the economy, underpinning economic activity and safeguarding medium - term price stability. this shows that our intention to keep ﬁnancing terms favourable

ernst welteke : the international financial architecture opening address by mr ernst welteke, president of the deutsche bundesbank, at a europeanamerican discussion on germany and the deutsche bundesbank sponsored by the american council, frankfurt, 6 september 2002. * * * i ladies and gentlemen it is a pleasure for me to welcome you to today ’ s conference on the international financial architecture. this conference is a joint venture between the deutsche bundesbank and the american council on germany. it offers an opportunity for a european - american dialogue on current financial market issues. since the mid - 1990s, the international community has witnessed a new wave of international financial crises. given the ongoing world - wide integration of financial systems, the consequences of crises are no longer confined to a single state. therefore international co - operation is more than ever required. a clear concept of the international financial framework is especially warranted when we consider the growth of the markets. for years the growth of international financial flows has far exceeded traded goods and services as well as income figures. financial markets mirror closely the economic and political situation. five days ahead of the first anniversary of september 11 they are particularly challenged. the downgraded economic perspectives are reflected in low asset prices at the stock markets. the current uncertainties are reflected in high volatility. investors worldwide take into account political tensions and impending military conflicts. therefore, the current concentration of threats can serve as an example for the burden which the financial architecture must be able to bear. ii the term “ financial architecture ” is intuitively associated with planning and constructing a solid building. there are prerequisites for a stable construction. an architect has to consider the statics of the building and its foundations. a market economy is such a foundation, along with the free movement of capital and functioning exchange rate regimes. a solid building rests on strong pillars to weather possible storms. one of the pillars of the financial system is a resilient and solid banking system. it has to be able to absorb shocks - the banking system needs “ systemic stability ”. a robust framework supports and enhances the pillars. international standards, like the “ cooke ratios ” of banking capital or the new basle ii accord, are part of the framework which supports and enhances the pillars. even massive pillars have to be inspected by experts from time to time. it is not always obvious to outsiders that parts of the structure have to be mended or rebuilt - the exterior facade can hide a rotten