Parallel shifts of the Phillips curve could arise from the impacts of cost-push shocks or from a de-anchoring of inflation expectations, with different implications for monetary policy. External and domestic cost-push shocks could have led to a downward shift in the Phillips curve of the euro area.
Our mandate is economic and financial policy, but we do not conduct those policies in a vacuum; we are to advise on policies for the betterment of the Barbadian society, and all its members. As I have been at pains to emphasize on more than one occasion, the outcome of any policy action depends on the individual responses of every producer and every consumer.