Indeed, I have often used a seafaring metaphor for Europe’s monetary union, arguing that it is better to be on a large and steady ship rather than on a small vessel, particularly in the turbulent waters we have experienced in recent years. As guardians of the single currency, we at the European Central Bank know that we have to stay on course.
Due to these adverse supply side adjustments, the bursting of the dot-com bubble brought a downswing with no disinflation.