Indeed, with the benefit of several years of experience, the Eurosystem and its counterparties have learned to interpret and predict each other’s actions. This has led to stable behaviour in banks’ participation in the ECB’s operations.
For all countries it is paramount that pro-cyclical policies be avoided in the current economic upswing. Productivity, growth potential and monetary policy Over the last fifteen years the euro area has witnessed an almost steady deceleration in the growth rate of labour productivity. This deceleration can be explained by underlying developments, some of which are welcome, whereas others are less favourable.