With the introduction of the euro, this form of intraEuropean monetary instability has been entirely wiped out once and for all. The single currency is a major step forward in terms of efficiency, resulting in lower transaction costs, more price transparency and a financial market operating in a more integrated way.
These data underscore the view, as laid out in the FOMC's December Summary of Economic Projections, that the fight to bring inflation down to our 2 percent target will be slower and longer than many had expected just a month or two ago.