BIS central bankers’ speeches  1  lesson how imbalances can put financial stability at risk. Therefore, it is important that existing imbalances are corrected. In this respect I see remarkable progress in some areas. All periphery countries have recaptured some of the losses in competitiveness that had been incurred previously.
There is no single best indicator of competitiveness, as there are many dimensions to this concept relating to both price and non-price factors. This notwithstanding, nominal unit labour cost developments provide a good indication of the extent to which an economy can effectively compete in terms of labour costs.