As shown on Chart 9, several equity valuation measures, including the ratio of equity prices to long-term past corporate earnings, indicate that despite the recent recovery in prices, equity market valuations in the euro area are still substantially lower than the peaks reached in October 2007 and in March 2000, and also below the long-term average level.
2  BIS central bankers’ speeches  Monetary policy With unemployment well above normal levels and inflation subdued, fostering our congressionally mandated objectives of maximum employment and price stability requires a highly accommodative monetary policy. Normally, the Committee would provide policy accommodation by reducing its target for the federal funds rate, thus putting downward pressure on interest rates generally.