And what can the Bank of Canada do to promote higher productivity and rising real incomes? An increase in real incomes is a key component of the good overall economic performance that the Bank aims at through a policy focused on low inflation.
But we kept a steady hand and never overreacted, with a view to anchoring long term inflation expectations. It is important to recall which factors have enabled us to make the euro a stable currency. I would name here, most importantly, the institutional framework of European Economic and Monetary Union.