household wealth are very modest across its distribution : most quintiles increase by around 1 %. the median net wealth in the lowest quintile increases by 2. 5 % from a rather low level, from eur 1120 to eur 1150 and can in part be driven by the leverage of the households similarly, the gini coefficient on net wealth barely changes – it ticks down from 68. 09 to 68. 07. 20 these results appear to be fully in line with my previous considerations based on the long - run evolution of inequality measures. another way of illustrating why the effect of app on wealth distribution does not seem to have been significant is provided by the analysis in adam and tzamourani ( 2015 ). 21 they use the euro area average wealth composition by asset classes taken from the hfcs, and simulate the effects on the wealth distribution of an arbitrary increase of 10 % in the prices of each asset class : housing, equities and bonds. the results are shown on chart 7, taken from their paper. 8 / 14 bis central bankers'speeches the chart shows that the effect of housing prices on wealth dominates the impact both of equities or bonds. it also illustrates that changes in housing prices reduce inequality in wealth distribution. bond price increases are fairly neutral and equity price variations aggravate inequality but their effect is smaller than the one from housing prices, at the euro area level. the overall effect of app on wealth distribution in the four countries analysed for the recent period in chart 6 should therefore not come as a surprise. let me now discuss how the effects of app on income of individual households are estimated. the impulse responses give information about the aggregate response of the intensive ( wages ) and the extensive ( unemployment ) margin. to distribute the decline in the unemployment rate across households depending on their demographics ( such as age, education, marital status and the number of children ), a probit model is estimated at the country level with the employment status as the dependent variable. 22 such a model captures some heterogeneity in the probability of employment across households. the fitted values from the probit model are then used to run a simulation that distributes the aggregate decline in unemployment across households. 23 chart 8 compares the changes in the unemployment rates across income quintiles. 9 / 14 bis central bankers'speeches the key point to note is that households with lower income are at any point in time substantially more likely to be unemployed and that their

economic analysis with that of the monetary analysis confirms the assessment of low inflationary pressures over the medium term. all in all, we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households. inflation expectations remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. as regards fiscal policies, high levels of public deficit and debt place an additional burden on monetary policy and undermine the stability and growth pact as a key pillar of economic and monetary union. it is of paramount importance that the stability programme of each euro area country clearly defines the fiscal exit and consolidation strategies for the period ahead. this requires determined efforts, notably on the side of countries with high deficit and debt levels. all countries will be required to meet their commitments under the excessive deficit procedures. consolidation of public finances should start in 2011 at the latest and will have to exceed substantially the annual adjustment of 0. 5 % of gdp set as a minimum requirement by the stability and growth pact. a strong focus on expenditure reforms is needed. the governing council issued, on 3 march 2010, a statement on the additional fiscal consolidation measures announced by the greek government. in all euro area countries, the key challenge in order to reinforce sustainable growth and job creation is to accelerate structural reforms. policies should be adopted which open up market access and increase competition. overall, it is essential to set the stage for long - term investment in innovation so as to create new business opportunities. sectoral support schemes implemented to cope with the immediate effects of the crisis should now be phased out. in labour markets, moderate wage setting in several economies and sufficient labour market flexibility are required in order to avoid higher structural unemployment over the coming years. these structural reforms should be supported by an appropriate restructuring of the banking sector. sound balance sheets, effective risk management and transparent, robust business models are key to strengthening banks ’ resilience to shocks and to ensuring adequate access to finance, thereby laying the foundations for sustainable growth and financial stability. we are now at your disposal for questions.