And we need ambitious targets for the reduction of public debt towards the 60% of GDP ceiling. The crisis has also demonstrated the importance of broader surveillance of macroeconomic policies in the euro area. Given the large spillovers from the macroeconomic policies of one country to other members of the single currency, much needs to be done.
A second story that could also explain the 1997 pattern of faster-than-expected growth and lower-than-expected inflation is a structural change or a series of structural changes that ushered in a new era of faster economic growth, perhaps lower average unemployment rates, and lower inflation.