The critical issue here is that even though inflation rose and fell over the course of the cycle, price expectations did not move -- even when inflation was running at 5 per cent, the community at large expected it would soon be back to its normal lower pace.
And the two must go hand in hand in order to succeed in supporting jobs, through partial unemployment in most euro area countries and through the liquidity that we are pouring into the economy so the banks can continue to lend and to support firms so they can remain operational.