markets due to, for example, a lower level of state aids and regulatory reform in network industries that resulted in substantial price reductions as well as in higher activity. for example, between 2000 and mid - 2003 alone, the price decline in telecommunication services as measured by the hicp sub - index for telecommunications led to a cumulated downward effect on total hicp inflation of 0. 33 percentage point. 2 moreover, its positive effect on real acticity supported the creation of new jobs. at the same time, labour market reforms undertaken during the 1990s seem to have contributed to the strong employment growth and to the considerable decline in unemployment in many countries during the cyclical upswing between 1997 and 2000. reform measures in this field included, for example, improvements in countries ’ job mediation systems, a more intensive use of part - time work contracts as well as policies raising the efficiency of tax and benefit systems. with the so - called lisbon agenda the european council intends to reinforce these reform efforts. it identifies various areas for further reform, summarised under employment, research and innovation, the single market, social cohesion as well as sustainable development and the environment. i think we namely, “ to become the most competitive and dynamic knowledge - based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion ” by 2010. see ecb monthly bulletin ( 2003 ), pp 26. all agree that stepping up structural reforms in these areas is indispensible for improving the euro area ’ s unsatisfactory growth potential and its ability to create employment, even more so after the eu has been enlarged to countries that have substantially lower labour costs. the euro area ’ s insufficient flexibility is manifested in the high rate of unemployment, which amounted to 8. 8 % in 2003. this reveals shortcomings in the implementation of structural refoms that would improve the use of the euro area ’ s productive forces and increase their flexibility in response to economic shocks. it is thus crucial that the lisbon agenda ’ s impetus is maintained, which must manifest itself in increased efforts to reach the agenda ’ s 2010 targets. there is, however, still a long way to go. for example, raising the euro area overall employment rate to 70 % by 2010 can be expected to require an additional 15. 3 million jobs, although hiding significantly varying challenges for different groups in the labour market. whereas, for example, significant progress has been made to raise female employment, employment growth for older workers aged

“ global dimensions of unconventional monetary policy ”, a symposium sponsored by the federal reserve bank of kansas city. ’ stein, j. ( 2014 ), “ challenges for monetary policy communication ”, remarks by jeremy c. stein to the money marketeers of new york university, may 6, 2014. stein, j. and sunderam, a. ( 2016 ), “ the fed, the bond market, and gradualism in monetary policy ”, manuscript, harvard university. woodford, m. ( 2012 ), “ methods of policy accommodation at the interest - rate lower bound ”, the changing policy landscape, federal reserve bank of kansas city, pages 185 – 288. 1 i would like to thank s. andreopoulos for his contributions to this speech. i remain solely responsible for the opinions contained herein. 2 see blinder et al. ( 2008 ). 3 see cœure ( 2017 ). 4 see gurkaynak et al. ( 2005 ) and, for the ecb, brand et al. ( 2010 ). 5 see eggertsson and woodford ( 2003 ) and woodford ( 2012 ) in particular. 6 for earlier contributions, see coeure ( 2013 ) and praet ( 2013 ). 7 see campbell et al. ( 2012 ). 8 see stein ( 2014 ) and stein and sunderam ( 2016 ). 9 see, e. g., filardo and hofmann ( 2014 ), p. 45. 10 see coenen et al. ( 2017 ). 9 / 10 bis central bankers'speeches 11 see, e. g., altavilla et al. ( 2015 ), blattner and joyce ( 2016 ) and ecb ( 2017 ). 12 see fuhrer ( 1994 ). 13 specifically, on occasions of no change, the introductory statement said that “ [ … ] in line with our forward guidance, we decided to keep the key ecb interest rates unchanged. ” 14 gaballo ( 2016 ). 15 see cœure ( 2016 ). the speech concluded that the current level of the dfr is “ still far away from the physical lower bound ”, triggering cash substitution, and safely above the economic lower bound. 16 see shin ( 2013 ). 17 see also stein ( 2014 ). 18 blinder ( 2004 ). 19 see e. g. blattner et al. ( 2008 ) and blinder et al. ( 2008 ). 10 / 10 bis