Monetary policy can support the absorption of economic slack, but it cannot strengthen potential growth. The current track record of the euro area economy is encouraging when judged against the subpar performance in the post-crisis years.
But it is insufficient when judged against the long-term challenges the euro area is facing due to the debt loads inherited from the crisis and the implicit liabilities created by its ageing societies. So while short-term risks to the economy have somewhat abated in recent times, growth-enhancing structural policies remain warranted to tackle persisting longer-term vulnerabilities. 1/1  BIS central bankers' speeches