Euro Area Inflation and how Import Prices, Profits, and Wages fit in
IMF Podcasts
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The Future of Monetary Policy in the Euro Area
Frederick Tuscany: Firms have to accept that labor costs go up without increasing their own prices further. He says monetary policy is not the right tool to influence distributional aspects here between firms and workers. But what it does imply is that tight policies continue to be needed to anchor expectations, he says.
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