From that standpoint I am concerned about the schemes in which nominal wages are indexed to  2  BIS Review 92/2008  consumer prices. They involve the risk of a wage-price spiral, very detrimental to employment. 9. Is there a risk of euro area inflation exceeding 5%? Is a sharp economic slowdown preferable to an inflationary spiral?
We are not pursuing two goals; we are pursuing one goal, which is price stability in the medium-term. And price stability is a pre-condition to sustainable growth and employment creation. There is no contradiction between price stability and sustainable growth. Since the euro was established in 1999, it has delivered both.