 Let me start by joining Philip in welcoming all of you to our ECB Conference on Monetary Policy. Welcome. We are privileged to have a rich set of papers being presented over the next two days by some of the world's leading academics. The questions that will be discussed go to the heart of the challenges that Monetary Policy now faces in the extraordinary circumstances of the pandemic. The supply and demand effects of COVID-19, the interplay between central banks and financial markets, monetary, fiscal interactions, the distributional consequences of Monetary Policy. All of these are central to understanding this unprecedented shock and determining how to best respond to it. These issues are not only crucial for current policy discussions, they are also reshaping the landscape for Monetary Policy and have fundamental implications for our policy frameworks. In that sense, they are also relevant for our ongoing strategy review and they underline why we have deliberately set out to make this exercise broad and exhaustive. As I said, no stone unturned. And we want to listen and we want to learn. Events such as this are a key part of that process. Interactions between academics and policymakers, between science and between practice are vital to help us evaluate our new environment and decide how Monetary Policy should operate within it. There are few who have done more to inform both research and policy than our keynote speaker today, Professor William Nordhaus. He has been a member of the Faculty of Yale University for over half a century and has made seminal contributions to a number of fields including on price and wage behavior, productivity and political business cycles. Today, thank you. You will focus on climate change. A topic you have been researching since the mid-70s, a time when the terms climate change and global warming were barely known outside a few scientific circles. You are a pioneer in combining scientific models of climate into long-run economic models for which you were awarded the 2018 Nobel Prize in Economics. These integrated assessment models enable an analysis of the long-run trade-offs between global climatic conditions and economic growth, helping to shape an optimal response for policymakers of all stripes. Your lifetime interest in climate makes you an ideal speaker for today's conference because there are reasons to believe that climate change will affect monetary policy in the coming years. Climate-related shocks, including those tied to the transition to a carbon-neutral economy, can increase economic volatility and affect our policy aim of price stability. At the same time, our policy arsenal to counter macroeconomic shocks may be affected by climate-related structural changes. And the overall increase from greater short-term volatility and underlying structural changes is likely to make our policy assessment much more difficult. Starting with our policy aim, climate change can create short-term volatility in economic activity and inflation through severe weather events such as droughts, floods, windstorms, heat waves, fires. There may also be a significant impact on inflation from transition policies, for instance via higher carbon prices. At the same time as the economic outlook becomes more volatile, climate change may also affect our policy arsenal to react to shocks. Damage to the capital stock may lower productivity growth by limiting knowledge production and knowledge spillovers. And the greater degree of risk aversion can increase household saving and lower business investment. And both of these factors may weigh on the long-run equilibrium real interest rate, and so affecting the available space for conventional policy. Moreover, climate-related risks could affect the stability of the financial system which can influence the transmission of the monetary policy stance to the financing conditions faced by households and businesses. The transition to a carbon-neutral world, particularly if it is disorderly, can create stranded assets, can impair collateral, and can generate losses for financial institutions. At the same time, a successful transition to a carbon-neutral world would foster the development of new technologies, speeding up the emergence of new productive firms and new sources of growth. The euro system itself could also be impacted by these developments, depending on how the assets obtained in our purchase programs and that collateralize our lending operations would be affected. That is why we are carefully considering the parameters of our collateral framework and why we are currently carrying out a climate stress test of the euro area financial system. Finally, by increasing short-run volatility and causing significant structural change, climate and transition risks are likely to inject substantial uncertainty into our policy assessment. For example, disaster caused by natural hazards usually depress output in the short-run, but since they typically affect both demand and supply, the effects on growth and inflation in the medium term are less certain. Upward pressure on inflation from the destruction of crops, capital and housing, can be offset by lower inflationary pressure from reduced wealth and higher uncertainty. Indeed, as Nobel Laureate Lars Peter Hansen and co-authors said in a recent paper, the challenge of climate change is, I quote, a problem for which aggregate uncertainty is a first-order consideration and not just a second-order afterthought, as it often is in quantitative macroeconomic analysis. The prospect of climate shocks growing in frequency, its magnitude and in persistence also has implications for the horizon over which we assess policy. It requires the central banks to lengthen their visibility over the evolution of the economy much beyond what we conventionally consider to be the medium term. In short, climate change pauses a massive challenge for our entire society and monetary policy will not be spared from its effects. And that is why the impact of climate change is an important focus of our strategy review. Our knowledge and understanding have their limits, however, and we are sure that we will benefit immensely from the collective wisdom shared by you, the participants at this conference. I look forward to hearing your voices. Thank you.