exiting? would the eu not be able to cope with that quite well? please understand that i would not like to comment as any statement could be used politically. to speculate about possible outcomes at this stage is pointless. that is less of an economic reasoning, and more of a political reasoning. it is both political and economic reasoning. you are asking me why i consider the euro to be irreversible? it is part of the treaty. but, just imagine what would happen if the euro were to disappear, which was already a matter of speculation in 2012. if all countries were to start devaluing, prices would no longer be stable. would the countries where complaints about reforms and fiscal consolidation are the loudest be better off exiting the euro area? they would still have to continue with their reforms! you cannot simply keep on devaluing a currency forever : it would simply lead to higher prices. you are considered in this country as someone who has a particular understanding of southern europe. do you sometimes find yourself having to defend germany to the italians? there is an equally large, equally irrational prejudice towards germany as there is in germany towards italy. it is the task of all of us, of all the european citizens to fight these prejudices and to behave so as not justify them. the prejudice is that germany wants to bring europe to heel? in italy, but for this matter this happens in many other countries in the euro area, there is often a failure to understand that, within a currency union our policy decisions affect the other members, and we can no longer behave as though we were alone in the world. so what are you trying to explain to the italians and other southern europeans? we have given ourselves some common rules. they must be respected. if the rules are not respected, there is no trust. and without trust, people call into question the foundations for the common currency. are you offended by the charge of being an agent of the southern countries? yes. have you come to accept this label? what are you doing to counter it? i don ’ t accept any labels, but i present facts. we are responsible for price stability. we are not there to provide advantages for one country or another, or even to punish german savers. i keep saying this, but...... the message is difficult to get across? i can but quote paul krugman : “ when faith meets evidence, evidence doesn ’ t stand a chance ”. this

’ s workforce is an important factor in economic growth. because the demand for skills and the churning of jobs is a never - ending process, workers have also come to realize that their education is not complete once they have a formal degree. in 2002 - 2003, 40 percent of adults participated in work - related training to retool, upgrade, or acquire skills. 3 many benefited from programs conducted on - site by their employers, but courses at colleges and technical schools were also an important source of training. i am sure that you all realize that your area ’ s universities, colleges, community colleges, and technical schools are a valuable asset in developing and maintaining a flexible and ever more productive workforce. i urge you also to engage in a civic dialogue with educators at all levels - including those at the elementary and secondary levels - about the importance not only of developing skills but also of adopting the view that education is a life - long process with important economic payoffs. as i indicated earlier, monetary policy has played an important role in providing support for the economy in recent years. but our work is not done. now that the expansion seems to have taken hold, we face the challenge of making the transition to a policy stance more appropriate for sustained economic expansion. our goal is to do so in way that maximizes economic growth while sustaining the significant progress that we have made in achieving price stability. i only have to compare my experience as a banker in the 1970s and early 1980s with the environment today to see the value of price stability. in that earlier period, my colleagues and i doubted that we would ever see single - digit mortgage rates again. and, many of us despaired as we listened to borrowers who were convinced that it was wise to “ buy now ” before prices inevitably rose further. certainly, today ’ s environment of low inflation and stable inflation expectations allows for much more rational business decisions concerning capital investment than we experienced in that earlier period. although inflation has picked up so far this year, it remains moderate. in this morning ’ s report, the core cpi was up 1. 7 percent from a year earlier ; in december, the year - over - year change was 1. 1 percent. keeping inflation low and stable will contribute importantly to sustaining financial conditions conducive for further gains in business investment. over the short run, low inflation and well - anchored inflation expectations are critical to maintaining economic stability and, over the long run, price stability promotes growth and efficiency. as chairman greenspan