Much of my emerging confidence results from the fact that the Federal Reserve System is fully prepared for the Year 2000; 100% of the Federal Reserve’s mission-critical systems are ready. At the Federal Reserve Board and the 12 District Banks, we are using today the automated systems that we will use in the Year 2000.
For the euro area as a whole, their findings are more ambiguous: the effect of the global output gap is not statistically significant when import prices and oil prices are included in the equations explaining the dynamics of inflation. 2  See Ciccarelli and Mojon (2006) and Borio and Filardo (2006).