Broadly speaking, there is a considerable growth gap between the core and the periphery, or to put it more precisely, some peripheral countries of the euro area. In my view, the economic heterogeneity of the euro area is a non-issue. Why should heterogeneity be a problem for the single monetary policy?
I am encouraged that inflation expectations remain near their longer-term averages and consistent with our 2 percent target. Given the large amount of monetary accommodation that we have added and continue to add to the economy, I think there is some upside risk to inflation in the longer term. There are risks with respect to my growth forecast as well.