Euro Area Policies

Author: International Monetary Fund

Volume/Issue: Volume 2003 Issue 297

Publication date: September 2003

ISBN: 9781451812893

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Business and Economics , Social Science , Inflation , Labor , Economics- Macroeconomics , Public Finance , Demography , ISCR , CR , euro , Longer-run inflation expectation , ECB's inflation objective , core inflation , headline inflation , equity price , inflation objective , ECB's target , Inflation , Labor markets , Structural reforms , Aging , Global , Europe

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Summary

The continuing weakness of activity in the euro area reflects an amalgam of cyclical and long-term forces that are likely to shape the outlook and to challenge policies. Financial conditions in the area have improved along with those in global markets, though financial fragilities may be impairing the transmission to firms. The aging of the population could entail significant declines in potential output growth and lower expected lifetime income resources. Forward-looking policies are needed to improve the quality and ensure long-term sustainability.