In this context, let me also focus on what is often referred to as the plumbing of the financial sector, that is, the Single Market for payment and cross-border securities settlement. Harmonisation is key to ensure that both the Single Market and the single currency function smoothly. The ECB has delivered an important contribution in this regard.
Thus, the overall effect on prices of the rise in the potential growth rate varies depending on how these opposing mechanisms work over time. The impact of the expansion of emerging market economies on price developments is increasingly significant. It has been pointed out that the expanding production capacity of emerging market economies, particularly China, has been containing upward pressure on prices.