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

11/21/2017 - Report
ic_blogtagFranceGermanyGreeceIrelandItalySpainEmploymentEurozoneInflationLabor market

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.​


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