This has been affected by the deeply entrenched mindset and behavior based on people's assumption that wages and prices will not increase easily, due mainly to the experience of prolonged low growth and deflation.
However, despite tentative evidence for a relaxation of financial market tensions, also in response to our recently announced Outright Monetary Transactions programme, there is no credible substitute for the positive output shock I described earlier. And triggering such an output shock is clearly a matter for elected governments, at national and European level. Conclusion Let me conclude on a positive note.