Differentials resulting from such factors may be detrimental to the dynamics of economic activity and employment. These are sources of macroeconomic differentials that policy-makers should be concerned about and where measures should be taken at the national level in order to increase economic flexibility.
The importance of the functioning of product, labour and financial markets Starting with monetary policy, the single monetary policy with a uniform policy interest rate for the euro area countries cannot, as you know, directly influence diversity in output growth or inflation across the euro area countries.