Is the series of measures announced by the ECB in June sufficient to reinvigorate the economies of the euro area? A low interest rate environment for an extended period of time will help economies get back on track and the targeted longer-term refinancing operations (TLTROs) which will be launched in September will support bank lending to households and non-financial corporations.
But our measures are no panacea. We have been removing some roadblocks on the road to recovery, but monetary policy cannot improve productivity and long-term growth. For that, countries must want to change inefficient structures and outdated models.