intervention at the meeting of the governors of jackson hole
Milan , August 22, 2014 – 21:11
The ECB could use” even unconventional instruments to safeguard inflation expectations in medium to long term. ” This was stated by the president of the ECB, Mario Draghi, speaking at a symposium in Jackson Hole on employment in the United States. It stressed that the ECB stands ready to adjust its monetary policy further beyond the package announced in June. “The most recent data on GDP confirms that the recovery in the euro remains weak in a uniform manner.”
At the moment, the accommodative fiscal and monetary policies “can not replace the necessary structural reforms,” explains Draghi. In short, reforms in some countries are not deferred. “On the demand side, monetary policy can play a central role, which at the moment means a policy accommodative for an extended period,” but a need for “national structural policies.”
The road to high levels of employment
The uncertainty on reestablishing an impact on employment: “The road to return to a high level of employment – says Draghi – in other words, is a combination of policies that provide together measures monetary, fiscal and structural policies. Structural unemployment was already high before the crisis in the euro area and national structural reforms to address this problem can no longer be delayed. The pressures on the central bank to respond invariably increase. ” You do not create jobs if there is no productivity. “The increase in the trend growth will come primarily from increased labor productivity. Therefore, we must ensure that, as far as possible, employment is concentrated on sectors with high added value and high productivity, which in turn is related to the skills. ”
Training and incentives
Actions necessary for the policies in the workplace are: “The lifelong learning, and the elimination of distortions such as the duality of the labor market. This latter measure, among other things, – said the number one ECB – would help reduce the inefficient turnover of workers and to increase incentives for employers and employees to invest in the development of professional skills. “
August 22, 2014 | 21:11
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