In a speech in Vienna last week, I explained why monetary policy could deliver the appropriate level of stimulus to the economy, even in a setting where interest rates are close to their effective lower bound. [1] As inflation is ultimately a monetary phenomenon, a committed central bank can always fulfil its mandate.
Recent wage developments have been moderate, and this trend is expected to continue for some time to come in view of the continued high level of unemployment in the  BIS Review 53/2004  1  euro area.