By contrast, the unwinding of outright purchases typically requires an additional decision, namely whether to hold the securities to maturity – and if not, when to sell. The route taken by the Eurosystem limits such decisions to our covered bonds purchases and for the rest relies on built-in mechanisms for the re-absorption of liquidity.
If the labor market tightens, those who were previously unable to find a job will be able to find one, while those who involuntarily took up employment as non-regular employees can find regular employment; as a result, they will receive sufficient job training and have more job opportunities, labor quality will rise, and productivity will grow.