Reluctance would also be the wrong attitude with regard to my second core issue: the road ahead to regain sound public finances and rebuild confidence in states. Though the problem of unsustainable government debt is basically an international one, strengthening EU governance is of the outmost importance in the current situation. 3.
The first part of the trade-off for monetary policy relates to the dual mandate of low and stable inflation and maximum sustainable employment. There is no trade-off when inflation is high, employment is strong, and unemployment is low as it is now. Both point to raising interest rates, to control inflation by slowing domestic spending and encouraging saving.