The Economic Outlook As I noted, the recent performance of the labor markets suggests that the economy was on an unsustainable track. Unless aggregate demand increases more slowly than it has in recent years -- more in line with trends in the supply of labor and productivity -- imbalances will emerge.
Large, unwarranted increases in spreads, caused by the grave health crisis – which risk fragmenting the euro area government bond market and undermining the transmission of monetary policy – will be addressed decisively.