The poverty rate has risen sharply since the onset of the recession, after a decade in which it had been relatively stable, and stands at 15 percent of the population, significantly above the average of the past three decades.8 Even those today who are fortunate enough to hold jobs have seen their hourly compensation barely keep pace with the cost of living over the past three years, while labor’s share of income – as measured by the percent of production by nonfinancial corporations accruing to workers as compensation – remains near the postwar low reached in 2011 (exhibit 7).
Their top priority expectation from the EU is to guarantee the “preservation of peace, the reinforcement of international security and the promotion of international cooperation”.9 There can be no doubt that, as monetary policy makers, the best contribution to social peace we can make to fulfill young Europeans’ expectations is to abide by our price stability mandate.