As the dynamics of money and credit aggregates can also reflect emerging financial imbalances, our monetary analysis encourages a leaning-against-the-wind attitude. This approach suggests a symmetric conduct of monetary policy over the financial cycle to contain the potential build-up of asset price bubbles and the associated risks to medium-term price stability.
In particular, wage increases should be guided, in general, by the trend in labour productivity growth, while taking full account of the present level of unit labour costs, in order to preserve or restore price competitiveness. Moreover, it is desirable that wage settlements move away from automatic, backward-looking indexation mechanisms.