The United States provides a “living example” in this respect: strong productivity growth in the past few years has contributed to raising potential output and alleviating the risk of monetary accommodation during a period of economic recovery leading to the build-up of inflationary pressures.
4  BIS Review 25/2004  It should be clear from what I have said that, over the long term, the key to addressing the problem of Europe’s less-than-satisfactory growth performance lies with national governments, trade unions and employers, and not with the ECB. Monetary policy cannot be expected to increase economic growth sustainably by tolerating higher inflation.