banks during the crisis, and the minimum reserve requirement policy. for example, let us take rediscount lines, which have historically represented as asset with a high risk of recovery for the central bank. banks ’ settlements on the basis of incentives by the monetary authority, both through the payment of monthly installments and through payments made in advance, have acted as an extraordinary money absorption mechanism in recent years. in turn, through weekly auctions of bills and notes, we have sterilized around ars 32 billion since 2005, thus increasing the diversity of instruments and the portfolio ’ s average duration. furthermore, we are developing the repo market, in order to turn the interest rate into an effective monetary policy tool, widening the modality of authorized operations so as to enhance the efficiency of banks ’ liquidity management. in short, the monetary policy adopted by the central bank has made it possible to keep the growth of means of payment under control, within the self - imposed targets set year after year. in this way, the growth of the means of payment was, for the first time since the end of the crisis, below nominal gdp growth, reflecting the prudential bias in our approach. uncertainty about the potential power of transmission mechanisms requires the monetary prudential stance to be gradual but persistent. thus – given that the current inflationary phenomenon has many causes and is derived from an economy in transition that has undergone an unprecedented crisis, with formidable structural changes ( including the destruction of the financial system and many economic institutions ), and where monetary policy transmission channels are still under recovery –, prudence and gradualism positively contribute to achieve intertemporal stability. in turn, and just as most emerging countries have been doing, the central bank continues to implement a prudential international reserve accumulation policy. the current stock of over usd 40 billion is a record high figure and more than triples the lowest amount in early 2003. thus, the central bank generates a true insurance against crises that reduces external vulnerability, lends certainty to public and private investment and develops a domestic capital market in local currency, ensuring macroeconomic equilibrium. international reserves are an indispensable pillar for central bank monetary and financial policy. therefore, they are also the basis for monetary regulation operations to strictly control the balance between supply and demand in the monetary market. with a growing stock of foreign currency, the requirements for an adequate management are greater. thus, during 2006 and so far this year, we got the highest return ( around

2021 money and banking conference online seminars macroeconomic conditions, growth and income distribution. underlying problems of the global economy and lessons from the pandemic november 03rd, 10th, 17th & 24th www. bcra. gob. ar closing remarks from the 2021 mbc miguel angel pesce governor, central bank of argentina it is time to close the 2021 edition of the bcra ’ s money and banking conference, which consisted in online seminars, as in 2020, because of the covid - 19 pandemic. the presentations delivered these past few weeks have been stimulating indeed. speakers have discussed the lessons learned from the pandemic, the problems that still exist, and the structural challenges in relation to the macroeconomy, distribution and growth from different viewpoints and based on various experiences. a significant part of the discussion focused on the relationship between fiscal policy, growth and inequality. speakers have highlighted how the exceptional conditions resulting from the covid - 19 pandemic have led to some kind of “ change of eras ”, evidencing both the inability of purely neoliberal policies to solve the crisis, and the need for structural reforms aiming at inclusive, sustainable growth. although the pandemic has globally pushed the tolerance threshold for fiscal deficit to new levels, following this agenda of economic recovery in the medium and long term without compromising fiscal sustainability poses some challenges. moreover, it has been stated that the increase in public spending, which has turned out to be effective amid the economic emergency, should be reconsidered in terms of composition in the long term. in this regard, the importance of channeling public spending into education, childcare, health and social assistance has been highlighted, given the long - term benefits for society as a whole, along with a potential, positive impact on productivity. we have also discussed the role of monetary and financial policies in sustainable economic development with social inclusion. emphasis has been placed on the negative effects of macroeconomic instability on inequality, and the manner in which the latter deepens recession. the challenges faced by central banks when implementing policies that may help to mitigate the impact of the economic cycle on inequality have also been underscored. as it reduces marginal propensity to consume, inequality weakens the channels of monetary policy transmission onto aggregate demand. at the same time, low - income sectors face increased restrictions in access to credit, even at lower interest rates. finally, trade - offs that may pose dilemmas in monetary policy have also