On the right-hand side you can see Eurosystem estimates of the slope of the Phillips curve.8 It shows a high degree of heterogeneity across euro area countries for the sensitivity of core inflation to economic slack. In other words, country-specific factors of inflation remain considerable, for example the degree of wage negotiation centralisation. These factors are also related to national institutions.
The upshot is that, in this environment, monetary policy is more difficult to calibrate. Different transmission mechanisms propagate the same shock to different degrees and with lags that may vary across countries.