International and historical experience has shown that if a central bank runs monetary policy looser than is required it will generate inflation. Such future inflationary problems would be very costly to resolve in terms of growth and employment. Is the exchange rate high? An initial question is whether the exchange rate is high.
Digitalisation and the euro area and EU economies”, Occasional Paper Series, No 244, ECB, June. [8] Graetz, G. and Michaels, G. (2018), “Robots at work”, Review of Economics and Statistics, Vol. 100, No 5, December, pp.