This will also help limit the risk of growing asymmetries among euro area countries in the recovery from the COVID-19 shock. Second, CMU would improve and diversify funding conditions, creating prospects for jobs and growth, including for a more sustainable and digitalised economy.
As I highlighted at the beginning of my remarks, the most important drivers of inflation in the model of inflation dynamics I use are relative price shocks, inflation expectations, and the balance between aggregate demand and supply in the United States, as measured by some notion of resource utilization.