One might reasonably ask if these similarities suggest that structural changes have placed the labor market on a permanently lower growth path. A first response is that there are important differences between this recovery and the recoveries that followed those earlier recessions. In particular, some explanations offered for the weak labor market recovery following the past two recessions are clearly not relevant today.
Eventually, such a policy would only exacerbate cyclical fluctuations without enhancing the long-term potential of the economy. Let me now turn to a number of criticisms of the Eurosystem’s monetary policy which have been raised since the strategy was first announced. I should like to address some of these concerns in the remaining part of my presentation.