These analyses include the assessment of a wide range of non-monetary economic variables, such as labour market indicators, including wages and unit labour costs; fiscal policy indicators; and, financial market indicators, such as the yield curve and stock prices.
Maintaining sound public finances will enable governments to let automatic stabilisers operate freely and thus contribute to smoothing the economic cycle and to supporting private sector confidence. Turning to structural policies, measures that foster competition and flexibility and promote moderate unit labour cost growth are of the utmost importance in the current economic circumstances.