Let me also remind you that empirical evidence shows there is a negative relationship between inflation and output growth, with a 100basis point permanent increase in inflation being associated with a 10 to 30-basis point decrease in trend output growth (see the May 2008 issue of the ECB’s Monthly Bulletin).
2  After the transition to the euro, the yield curve was fully in line with the benchmark set by the most credible currencies before EMU. As a result, in some euro area countries, medium and long-term market interest rates fell to unprecedented levels when the euro was introduced and have remained there since. This is a phenomenal benefit.