Visco: “Correct EU policy, but I would have been more gradual”
“I expect core inflation to reflect lower energy costs. Monetary policy is certainly the correct one at the moment even if perhaps I would have pushed for a greater gradualness”. She said it the governor of the Bank of Italy, Ignazio Visco, at the Turin Economy Festival. “It’s the right one to keep possible demand pressures under control and guarantee the return on the price stability objective” she underlined.
“Monetary policy must not be left alone, it must be accompanied by a prudent budgetary policy and the responsibility of the social partners – added Visco -. In Europe there are trade unions and businesses and when they say that there is a shock and that it shouldn’t be accommodated it is not because we want wages to fall, but because wages must grow with the growth of the economy. If the price-wages run-up were to be set in motion, it would be illusory”.