Second, the structure of the two economies is very different – mainly with respect to the degree of market flexibility – producing different effects in the two areas in response to similar shocks, with specific implications for monetary policy. This interpretation does not deny the presence of some differences in the policy framework adopted in the two currency areas.
For instance, the ECB’s primary objective of price stability and its mediumterm orientation imply scepticism regarding the appropriateness and efficacy of fine-tuning policies.