To make it absolutely clear: My thoughts on some trace elements of a New Economy in Germany do not imply that I disregard the importance of the money supply for the medium-term price development in the euro area. 1 2  Schumpeter, The Theory of Economic Development, (1911), Transactions Publishers, 1993, p. 223. Schumpeter, loc. cit., p. 64.
In particular, public finances should have sufficient room for manoeuvre in order to better cope with expected substantial increase in age-related expenditures. It will also be important, in both the public and private sectors, to attain moderate labor cost developments that take into account productivity growth, labor market conditions, and developments in competitor countries.