For this reason, the aim of structural reforms in Europe should above all be to tackle this inefficiency by allowing labour and capital to be allocated in a more efficient way across the region, including by completing banking union, keeping up with the ambition of capital market 23 5/7  BIS central bankers' speeches  union and launching a more ambitious single market agenda.23 And this will only become more important going forward, as the drag from an ageing society can be expected to lower the labour contribution to potential growth, meaning future gains in living standards will have to come more from productivity.
For monetary policy, I see two implications. The first is that our current monetary policy stance is appropriate. It has been calibrated on the view that the uncertainty around canonical output gap estimates is considerable and that slack could be larger. Ample monetary policy accommodation therefore continues to be necessary for inflation to reach levels closer to 2% sustainably.