Moreover, monetary policy may be faced with a short-run trade-off between inflation stabilisation around the target value and output stabilisation. Some contributions during the conference, for instance the keynote presentation which Jordi Galí will give this afternoon, address these issues in theoretical models. It is however obvious that this topic is also relevant for the actual conduct of monetary policy.
The key to sustainable economic recovery is developments in private consumption and nonmanufacturing. I will elaborate on this point later in my speech. Meanwhile, risks to the outlook include developments in the emerging and commodityexporting economies, the prospects for the European debt problem, and the pace of recovery in the U.S. economy.