The package provides all jurisdictions with a framework for assessing and addressing vulnerabilities in their MMFs, and an agreed set of policy tools. Frankly, we would have gone further. Like many other central banks, we had favoured the adoption of global mandatory standards rather than a menu of options. Nevertheless, we consider this agreement as a first important milestone.
After reviewing a number of unsettled issues pertaining to the Phillips curve in the economic literature, such as those related to the measurement of economic slack and inflation expectations, the discussion note argues that the two puzzles can be explained, and that the Philips curve for the euro area is alive and well.