In a speech delivered on Wednesday 27 March at an event organised by the House of the Euro and the Centre for European Reform (CER), Piero Cipollone, a member of the Executive Board of the European Central Bank (ECB), examined the risk that wage and productivity growth might be incompatible with inflation convergence towards the ECB’s medium-term price stability objective of 2%.
He felt that we were still a long way from a scenario of stability in the euro area, and that real wages were...