But the analysis also shows that the transmission can take several years. With that in mind, the slow strengthening of inflation shouldn’t really come as a surprise to us. An ECB study suggests that this is also the case for other major euro area economies. [16] In a low inflation setting, the transmission could even take longer than under normal circumstances.
With the foreign exchange we have earned, we have imported the products and services that support our modern lifestyles. Going forward, that is what we must continue to do.