For significant gains in productivity to resume, governments must ensure that their microeconomic policies encourage flexibility and do not hinder innovation in the public and private sectors. 2  BIS Review 11/2004  Canada already benefits from an educated and skilled labour force. Nevertheless, workers must continue to have access to the training they need to take advantage of new technologies.
From the outset, such considerations were also recognised in the ECB’s strategy. We have always acknowledged the need to avoid excess volatility in output and nominal interest rates, which would have resulted from excessive “fine tuning”.