The ECB forecast is thus produced twice per year by the staff of the Eurosystem and is based on the staff’s technical expertise. The forecast is therefore an input into the policy making process. The forecast does not embody the policy judgement of members of the Governing Council.
unexpectedly  According to this reasoning, the relationship between unemployment and inflation was therefore an ‘expectations-augmented Phillips Curve’, and it looked something like this: 1 (actual inf lation − expected inf lation) = f (unemployment − N AI RU )  There was just one problem. There were things on both sides of this equation that you can't directly observe.