However, the exchange rate – like other economic factors – is relevant to the Eurosystem’s monetary policy inasmuch as exchange rate movements can impact on the movement of price levels within the single currency area. We are currently in the midst of a period of exceptionally low inflation in the euro area, which will probably last for some time to come.
[8]  This is consistent with Dhillon Z and N Cassidy (2018), ‘Labour Market Outcomes for Younger People’, RBA Bulletin, June, which found that the unemployment rate for younger workers has a largely contemporaneous relationship with the aggregate unemployment rate but tends to move twice as much.