In the euro area, a prolonged period of sustained growth and lower unemployment requires decisive measures for tackling existing market imperfections, in particular inflexible market structures, and the resolute continuation of the process of consolidating public finances, including the reform of social security systems.
What does all of this mean for the conduct of monetary policy? In my view, it reinforces the need for policy to continue to be dependent on the incoming data on output and prices and on our forecasts for how those variables will evolve over time.