Reflecting the rigidities prevailing in euro area labour markets, wage growth remained on an upward trend until early 2002, despite the weakening of economic activity. It is not yet clear whether this trend has come to a halt. Wage moderation is crucial for maintaining price stability. Furthermore, it would help to improve the prospects for economic and employment growth.
But the system has been short of a comprehensive answer on what would happen in the extremely  2  BIS central bankers’ speeches  unlikely, but also rather scary, event of a failure of the now frequent auctions of new shortmaturity mortgage bonds.