Euro Area: Inflation Target Will Be Achieved If Unemployment Continues to Fall

21 November 2017

While the reaction of wages to falling unemployment is weaker than in former decades, it is by no means zero. If unemployment continues to decline at its present pace, we would expect wage growth of around 2.4% until 2019. This would move the ECB’s inflation target within reach and facilitate a normalization of monetary policy.​

 

Chief Economist
Ludovic joined Euler Hermes as Chief Economist in 2011. He also heads macroeconomic and thematic research for Allianz SE globally since 2017. Ludovic sits on the Board of Directors of Solunion, Euler Hermes’ joint venture company for Spain and Latin America.