Not only does an undertrained and undereducated workforce constrain economic growth, it reinforces the cycle of unemployment and widening  4  BIS central bankers’ speeches  inequalities. As Michael Spence has noted, in a world in which knowledge and connectivity are increasingly the basis for value creation, failures in the educational system are the surest form of exclusion there is.
It would be inappropriate for me to conclude without saying something about monetary policy and inflation, and the contribution monetary policy can make to the growth and employment trajectory. We know that unemployment has serious socioeconomic consequences, but so does high inflation. It is difficult to find examples in history where sustained economic growth and high inflation went hand in hand.