Another positive consideration is that globalization helps to discipline policymakers by punishing them promptly when their policy actions are perceived to have harmful consequences.
The ECB’s monetary policy, which focuses on price stability in the euro area as a whole, would take that development into account. The resulting stance of monetary policy will affect wage and price developments in the surplus countries, aiding the adjustment in competitiveness. Similarly, the stance will affect demand in the surplus countries, again fostering adjustment.