If Europe succeeds in making its labour markets significantly more flexible, and if competitive pressure in the goods markets rises significantly; and if this causes the wind of the global markets and of worldwide competition to be conveyed more strongly internally via flexible, highly competitive structures, and the European economy is given a breath of fresh air, then the conditions for sustained price stability in Europe will improve.
Working on the front lines of international finance in the recurring process of turbulence and evolution of the global financial system, under many different hats, I have always struggled with seemingly intractable problems, such as large fluctuations in the exchange rate and huge swings in the flows of capital.