Risks to such baseline scenario include developments in the emerging and commodityexporting economies, the prospects regarding the debt problem and the risk of low inflation being protracted in Europe, and the pace of recovery in the U.S. economy. II. Conduct of monetary policy  Now, I will talk about monetary policy that the Bank pursues.
In the euro area, decisive contributions from areas beyond monetary policy remain necessary to raise the longer-term growth potential and reduce vulnerabilities. The current favourable economic conditions, in a politically stable environment, should help euro area countries to step up the implementation of reforms and thereby spur innovation and investment, further creating new jobs and reducing unemployment.