BIS central bankers’ speeches  5    The slowdown in rural wage growth may be partly the consequence of tighter policy limiting wage rise elsewhere.   Of course, monetary policy’s effectiveness in containing other price and wage increases (such as, services prices, which are an important part of the CPI index)) is far less controversial.
That was fine for a while, but the shortcomings at a national level became increasingly apparent when the global credit bubble burst. A number of euro-area countries were pushed to the brink of insolvency by the crisis.