Adjusted for population growth differences, growth per capita in the euro area has been almost the same as in the United States over the past decade, at about 1% per year in terms of GDP per capita growth. Trade among euro area countries has also risen strongly.
This will allow monetary policy to extend its horizon and to apply monetary policy more symmetrically across the financial cycle, in line with the fact that financial imbalances regularly build up over a longer period of time. Such a more symmetric approach to monetary policy is based on central banks’ primary goal of price stability, and will contribute to financial stability.