I regard this as an important message, not least for those who argue that we should have lowered rates more aggressively, and almost at the same time, defend an extensive interpretation of the socalled European social model with all its implied rigidities and inflexibilities that make such a response so difficult, if not impossible.
Given the dynamics of shocks and the structure of the euro area economy, the policy easing that the ECB started in 2001 and the low policy rates that prevailed over recent years represented a rather accommodative policy stance over an extended period of time.