From a macroeconomic perspective, increases in firms' sales prices will lead to a rise in the general price level, while improvements in the efficiency of individual firms' production and sales processes will lead to higher productivity in the economy as a whole.
It states that in a situation of significant economic shock, structural reforms may have a negative effect on short-term demand. Such a conclusion, implying that structural reforms should be postponed – and here again I refer to President Draghi’s speech 4 – has nevertheless to be rejected.