Some of the more thoughtful observers wondered whether, given the particular nature of the recent business cycle, the weakness could all be over quite so quickly, but at the time the numbers coming in seemed to be lending support to a relatively optimistic prognosis. Hence, for several months during the first half of last year, talk of global recovery was in the air.
The second channel through which education affects the conduct of monetary policy relates to the efficient functioning of national labour markets and to the role of labour mobility as an adjustment mechanism, which is especially relevant in a monetary union. Increased labour force participation and mobility of high-skilled workers will improve job-matching efficiency in the euro area, especially when there are certain skill shortages.