And stable prices help households to plan for the future with con dence. Stability enables businesses to grow, to create new jobs. Stability enables governments to make sustainable, long-term investment decisions in health, education or transport for example. The public good is a fundamental guiding principle of all that we do at the Central Bank of Ireland.
The man on the street is entitled to undiminished income. He is entitled to zero inflation. If the government has devalued the currency, it must increase salaries by as much. I am not even sure that the ailing companies have the resources to fully compensate for the lost purchasing power without passing on the cost to the same consumer.