These concerns may potentially undermine the credibility and independence of the central bank. If central banks need to raise interest rates sharply to protect price stability, this implies significant risk exposures for central banks and may have implications for government budgets. [22] In addition, large central bank’s sovereign bond holdings may distort the price information of underlying risks in the euro area.
The Plan includes numerous interventions designed to improve the quality of public education, but firms themselves can do a great deal by focusing more decisively on training for human resources. With this in mind too, they should be encouraged to attain the scale required to bear the costs of investing in the knowledge needed to approach the technological frontier.