` – We need an economy that can “get high” but there is the “risk of an incomplete recovery”: states it Fabio Panetta, member of the Executive Committee of the ECB, in an interview with Corriere della Sera. In Europe “there are ample unused resources” and “low inflation holding us back”. For growth “we need public investments”.
“In the past, impatience has led the ECB to raise rates prematurely, compressing inflation excessively and curbing growth. Now it is clear that to ensure price stability, it may be necessary, as they say, to run the economy hot. , rev up the economy, “he explains. “It is the condition to make full use of available labor resources and to generate upward pressure on wages capable of pushing inflation towards our goal”, highlights Panetta.
For the exponent of the ECB, “i risks of an incomplete recovery they are still high while the risks of economic overheating and high inflation are contained “.” In the European economy there are ample unused resources: people who do not have jobs, plants that have not returned to production. We have not recovered the level of GDP achieved before the crisis. And we are well under the pre.crisis growth path, which is where we would be if there hadn’t been a pandemic “, continues Panetta.
“That GDP lost along the way, that productive capacity, those jobs destroyed by the crisis we must get them back as soon as possible. The United States has been achieving these objectives and I do not see why Europe cannot. Therefore fiscal policy and monetary policy must continue to support the economy“, conclude.