22 And as Jamilov (2022) has shown, the effectiveness of monetary policy can be influenced by trust.23  Achieving this better understanding is key to maintaining trust in central banks, helping to buttress their independence. Equally important, a more active monitoring from the people we serve will also reduce the risk of complacency creeping in.
Measures of slack, such as the U6 measure of unemployment, also show improvement.6 At the same time, there is growing evidence that labour market tightness is translating into a stronger pick-up in wage growth. Annual growth in negotiated wages in the euro area increased to 1.9% in the first quarter of 2018, from 1.6% in the fourth quarter of 2017.