economic literacy and inflation expectations : evidence from a laboratory experiment ”, journal of money, credit and banking, vol. 46, no 7, october, pp. 1421 - 1456 ; weber, m. et al. ( 2022 ), “ the subjective inflation expectations of households and firms : measurement, determinants, and implications ”, nber working papers, no 30046, national bureau of economic research ; and malmendier, u. ( 2022 ), “ experiencing inflation ”, ecb forum on central banking, sintra, 29 june. 30. clarida, r., gali, j. and gertler, m. ( 2000 ), op. cit. 31. the conviction behind this focus was that monetary policy could effectively deal with high inflation. 32. the choice of how much weight to put on output stabilisation will determine the optimal policy horizon. see smets, f. ( 2003 ), “ maintaining price stability : how long is the medium term? ”, journal of monetary economics, vol. 50, no 6, pp. 1293 - 1309. 33. caggese, a. and perez - orive, a. ( 2022 ), “ how stimulative are low real interest rates for intangible capital? ”, european economic review, vol. 142 ; and dottling, r. and ratnovski, l. ( 2020 ), “ monetary policy andintangible investment ”, working paper series, no 2444, ecb. 34. cao, g. and willis, j. ( 2015 ), “ has the u. s. economy become less interest rate sensitive? ”, economic review, issue q ii, federal reserve bank of kansas city, pp. 5 - 36. 35. see, for example, del negro, m. et al. ( 2020 ), “ what ’ s up with the phillips curve? ”, brookings papers on economic activity, spring, pp. 301 - 357 ; and ratner, d. and sim, j. ( 2022 ), “ who killed the phillips curve? a murder mystery ”, finance and economics discussion series, no 2022 - 28, board of governors of the federal reserve system. 36. there are studies suggesting that the slope of the structural phillips curve may be steeper. see hazell, j. et al. ( 2020 ), “ the slope of the phillips curve

however, a key part of the reform was the overhaul of the regulatory framework of the saving banks ’ sector, which represented almost half of the spanish banking system. as you are aware, this reform aimed at separating the ownership of the banking institutions from their management. former saving banks ( except for two small institutions ) have all become banking foundations whose main asset is the participation in credit institutions. the latter are managed independently of the foundation and take the form of regular corporations which, in most cases, are or will soon be listed in capital markets. moreover, the law incorporates a number of incentives for foundations to relinquish control of the banks in which they participate, something that will normally happen in most cases in less than four years. we believe that this approach will certainly promote better business management and facilitate access to capital markets. in doing so it will contribute to a smoother adjustment by saving banks to the new and very demanding environment, thereby contributing to the strength of the institutions themselves and to financial stability. but more importantly, the highly relevant social objectives of the cajas are fully preserved through the operation of the foundations. these foundations continue to contribute very 4 / 5 significantly to social welfare. it is just that the foundations´ wealth will now be more diversified and, therefore, they are likely to obtain a more robust stream of income with which to finance their activities. of course, i would not dare claim that this formula be pursued everywhere. other reform strategies may also work in other jurisdictions. yet, i strongly believe that some form of restructuring is required in the european banking market and that the strategy followed in spain is a reasonable response to the new challenges all credit institutions have to face while preserving the essence of the social value that saving banks have historically provided. thank you for your attention. 5 / 5