However, as emphasised in a forthcoming issue of the Banque de France monthly Bulletin 1 , which is entirely devoted to various inflation related issues, currently available measures of inflation expectations appear crude and limited in terms of information content to explain short run wage formation or consumption dynamics. In practice, the Eurosystem has a prudent and comprehensive approach when considering private agents’ inflation expectations. While taking into account a large range of expectations indicators, the Governing Council does not react to them mechanistically. A firm anchoring of inflation expectations is nevertheless crucial in order to take up the challenges coming from the new inflationary environment. Among the long-run evolutions that can be expected with a high degree of certainty, the changing impact of globalisation on inflation, population ageing and climate change constitute threats to price stability and major new challenges for monetary policy. First, globalisation may turn out to be more inflationary in the future than in its early phase. This was one of the issues addressed in the recent international symposium of the Banque de France. For over ten years, with the growing integration of our economies, powerful forces, throughout the world, have been acting to enhance price stability. Each year, the integration of millions of people into the world labour market has increased global production capacity, in particular for tradable goods.
William C Dudley: Regional economy and current trends in regional employment Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Quarterly Regional Economic Press Briefing, New York, 6 May 2011. *  *  *  Good morning and welcome once again to the New York Fed’s Quarterly Regional Economic Press Briefing. I am pleased to have this opportunity to talk with the journalists covering our region – and through you, to the people in our District. This morning I will discuss national and regional economic conditions, with particular attention to employment trends in the Second Federal Reserve District, which covers New York; northern New Jersey; Fairfield County, Connecticut; Puerto Rico; and the U.S. Virgin Islands. I will not comment on the outlook for monetary policy today but instead will focus on the economy itself. Following my remarks, my colleagues will provide more detail. As always, what I have to say reflects my own views and not necessarily those of the Federal Open Market Committee (FOMC) or the Federal Reserve System. National economic conditions I’ll begin by commenting on national economic conditions. Since the recession ended in 2009, the economy has grown at a modest pace. When we met in February, the brisker pace of growth in the last quarter of 2010 appeared to be carrying over to the beginning of this year.