The European Central Bank (ECB) is
pursuing the right monetary policy under present circumstances
although it could perhaps have been more gradual, Bank of Italy
Governor Ignazio Visco said on Saturday.
"I expect core inflation to reflect the reduction in the cost of
energy," Visco said at the International Economy Festival in
Turin.
"Monetary policy is certainly the correct one at the moment,
although I would perhaps have pushed for more gradualness," he
added.
"It is the right one to keep possible demand drivers under
control and meet the aim of stabilizing prices," said Visco.
However, monetary policy must be accompanied by a shrewd fiscal
policy and responsibility from social partners, continued the
central bank governor.
"In Europe there are unions and businesses, and when we say that
there is a shock and that it should not be accommodated, it is
not because we want to make wages fall, but because wages must
grow as the economy grows," said Visco.
"To set in motion a situation were prices and wages chase each
other would be illusory," he added.
Visco also said in Italy and Europe there has been a lack of
awareness of the importance of innovation.
"On electric cars Italy and Europe have lagged behind. There has
been a lack of awareness of the importance of innovation in this
field," he told the festival.
"In digital innovation Europe definitely does not have the
leadership," said Visco.
"It is difficult to expect innovation to come from European
companies," he continued, saying however that Italy and Europe
can become part of many areas and developments provided there
are "unity, cohesion and shared goals".
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