large - scale purchases of government bonds may affect the relationship between the central bank and the fiscal authority. what i am not sure of is when such a relationship can be characterised as “ problematic ” or “ unproblematic ”. reading the paper, i gained the impression ( perhaps wrongly ) that a “ problematic ” relationship is one in which monetary and fiscal policies are distinct, as is the case in the euro area. i would then like to ask : “ just where is the problem if monetary policy is kept distinct from fiscal policy, and cannot be manipulated by the fiscal authorities to solve budgetary problems? ” perhaps it is a problem for the fiscal authorities, because they would like to use the instrument of monetary policy to inflate away the fiscal problems and have, instead, to resort to fiscal measures that are subject to parliamentary approval and that all citizens are able to judge and assess. it seems to me that it is not a problem for the citizens at large, especially for the less wealthy, that fiscal problems are not solved through the inflation tax or by keeping the rate of interest on public debt instruments artificially low. to be sure, for the european population at large, the role of the central bank should remain distinct from that of the fiscal authorities, and monetary policy should remain firmly in the hands of the central bank. this is why the prohibition of monetary financing of the government and the independence of the central bank have been enshrined in the treaty. it is the best way to ensure that budgetary problems are addressed in a democratic way, rather than through the manipulation of the currency, which has hidden distribution effects on the population. in greece, ireland and spain, in france and germany, the governments are adopting budgetary policies in full awareness of the fact that they cannot count on the inflation tax to solve their fiscal challenges, challenges that all advanced societies have to face. can we consider this to be a problem? let me conclude on a broader issue, related to the title of the conference : transatlantic relationship in an era of growing economic multipolarity. at many of the conferences on trans - atlantic relations that i have attended in the past, participants often discussed the decreasing relevance of these relations in the light of the new emerging global powers. interestingly, when we get to discuss monetary issues, trans - atlantic relations remain important. the reason is that they are the only relevant ones. a great deal of attention seems to be devoted to potential – and i would add, minor

develop a framework of metrics for measuring progress. e. develop innovative financial solutions for supporting the needs of long gestation environment - friendly projects. f. enhance capabilities for assessing the risks including environment risks in order to dovetail them into lending decisions. 22. while the time taken to achieve these milestones could vary in view of the balanced emphasis on economic development and environment, it would go a long way in aligning the indian financial system with sustainable agenda. 23. i wish ficci and unep the very best for all the future endeavors in this area. bis central bankers ’ speeches