– including what was, for a period of time, the very successful mobile phone business of nokia corporation. in order to adjust to the shocks to above mentioned industries, together with the global financial crisis, we eventually had to restore our cost competitiveness through an internal devaluation, as an external adjustment was no more possible. following difficult negotiations with the trade unions and employers, the social partners agreed on a ’ competitiveness pact ’ in 2016. together with some other measures, it has helped to reduce unit labour costs by 6. 5 % in 2014 – 17, and our economy has recovered from zero growth to 2 - 3 % growth in the last years. employment rate has increased from 68 % to over 73 %. today, the production of mobile phones does not play a major role in the finnish economy anymore, and the role of traditional paper production has also diminished. the sustainable bioeconomy has, however, given the finnish forest industry a new lease of life. various branches of technology - intensive industries have become more important in finland, including healthtech, as well as various forms of cleantech. 1 / 4 bis central bankers'speeches it is a fact of life that asymmetric shocks are always a feature of a monetary union. they are one important reason to reform and improve the structures of european monetary union. the euro was introduced twenty years ago in order to insulate the single market of the european union from exchange - rate crises and competitive devaluations. the most difficult moments of european monetary union followed the great recession, when the european sovereign debt crisis ran wild in 2010 – 12. the roots of the crisis lay in the systemic weaknesses of the monetary union, which were not recognized in the first two decades of the euro in 1990 – 2010. a lot has been learned from the crisis and done to strengthen european monetary union since then. the most important steps still to be taken concern the financial system. the european banking union needs to be finalised, and progress is needed in building the capital markets union. at the same time, every member state of emu should work to strengthen the structures of its economy, pursue growth - enhancing reforms and ensure the sustainability of its public finances. ladies and gentlemen, [ slide 2 ] let me now turn to recent developments in the global economy. we are experiencing a widespread slowdown. growth has slowed in basically all major economic areas during the past year. i would identify three main reasons for this subdued global growth. the first reason is

governor olli rehn : monetary policy at a crossroads, policy panel at the dallas fed conference 18 june 2022 saturday 18 june 2022, 11 : 40 pm governor olli rehn, bank of finland policy panel at the dallas fed conference, 18 june 2022 monetary policy at a crossroads dear colleagues, ladies and gentlemen, it is my honour and great pleasure to be with you here in dallas today. to the organisers, many thanks for the invitation to join the conference and this panel, the themes of which are most topical. it is indeed pertinent to explore central banks ’ recent reviews of their monetary policy frameworks and how monetary policy has passed the tests of recent crises, including the covid - 19 pandemic and russia ’ s war in ukraine. i should say that i am here in my capacity as a member of the governing council of the european central bank, and so the views i express are built on this experience. i should also add that i am speaking as a member of the governing council rather than on its behalf. monetary policymakers are currently facing challenges that seemed quite unlikely or distant even just a year ago. after a long decade of low inflation, we moved last year very quickly to a period of very high inflation. this challenges our analyses and our thinking in various ways. recently, there has been much talk about a ’ regime change ’ in monetary policy. dictionaries typically define regime change as “ a persistent change in the structure and function of a system ”. for political scientists, it has a very specific meaning, i. e. a profound change or replacement of one government regime with another, referring to the nature of the political system, be it democracy, autocracy versus tyranny for plato, or principality versus republican government ( ‘ r ’ in lower case ) for machiavelli. so, while there is no doubt that monetary policy is at a crossroads today, we should ask if it really is about a monetary policy regime change. i doubt that. instead, the ongoing policy normalisation is a response to the rapidly, even dramatically changed inflation outlook. as to the ecb, our strategy and monetary policy framework was reviewed and revised a year ago, in july 2021, and the revised strategy remains valid : we are determined to deliver on our symmetric target of 2 % inflation in the medium term. i ’ ll come back to that shortly, but me begin with the current outlook. [ slide # 2 eurozone recovering well