employment : by fostering the exchange of ideas and knowledge as researchers, students, and technologies move across europe. 21 i am sure that many of the students here have been on an erasmus exchange, or have come from other european countries to study here. there is clearly a european dimension to education. and europe can contribute by investing in such exchanges as well as more broadly in the advancement of science. the new erasmus +, which now offers more opportunities for learning and training, is thus a welcome development. and the bologna process makes it easier for young people to work in another eu country by facilitating the recognition of qualifications across borders. moreover, the youth guarantee programme provides welcome support to the commitment by member states to ensure that young europeans under the age of 25 receive a good quality offer of employment, training or continued education. labour mobility is often, when undesired, the result of poor cyclical and structural labour market conditions. it is those conditions that should be addressed in the first place. the completion of the single market, the continuing progress in european integration and the deepening of our economic and monetary union, will further expand the opportunities for young people beyond borders, and job matching possibilities. labour mobility across countries and sectors is bound to increase. this will require adequate supranational policies. conclusion let me conclude. in some countries, and ireland is one of them, some progress in reducing youth unemployment has been achieved. more generally, the strengthening of the recovery in the euro area will continue to reduce its extent. but to address structural causes of youth unemployment, a uniform degree of protection among workers, flexible labour arrangements, effective vocational training programmes, high degree of trade openness, and support to reduce the social cost of mobility are all necessary conditions. i have highlighted the economic reasons that make addressing youth unemployment an invaluable undertaking. but there is a more fundamental reason to continue addressing this challenge with determination and as a priority. we have seen how in several countries the weight of the crisis has fallen disproportionately on the young people, leaving a legacy of failed hopes, anger and ultimately mistrust in the values of our society and in the identity of our democracy. 5 / 7 bis central bankers'speeches some say that a more equitable distribution of income and wealth is the answer and that it would bring those who have lost out from globalisation back into our compact. but that cannot be enough for the young people who are the future of our democracies

would otherwise be the case if confronted with a similar macroeconomic outlook under more normal market conditions. given the uncertainty surrounding the appropriate monetary policy stance under such circumstances, it could consider to err on the side of caution by trying to avoid feeding the bubble with an overly accommodative policy. these issues, which have been extensively discussed, deserve further analysis and consideration. v. the implications of globalisation for monetary policy and the global responsibilities of central banks my final remarks relate to the last, very challenging and open question raised by alan on the global responsibilities of the main central banks. this is an important question that cannot be answered in a simple, straightforward manner and in a limited period of time. and alan does not provide an answer, either. i would like to pose, however, a set of related questions on the implications of globalisation for monetary policy. in a globalised economy, should the role and orientation of monetary policy be changed? should the framework for analysis and policy formulation be amended? is the required analysis for setting policy becoming more demanding? the direct and brief answers i recently gave to these questions are : no, no and yes to some extent. it is sometimes argued that the monetary policy of a major central bank should help guide the domestic economy ’ s adjustment to the evolving global economic environment and the competitive pressures associated with globalisation ; and that it should foster the adjustment of global imbalances and even assume responsibility for the smooth functioning of the global economy. in my opinion, globalisation does not affect the central role and overriding responsibility of central banks to preserve price stability “ at home ”. on the contrary, maintaining price stability in a rapidly evolving, globalised economy that may influence the dynamics of inflation in various ways becomes more essential and challenging, particularly in situations where adverse inflation shocks or inflationary pressures in some economies are now more easily transmitted to others. consequently, if the primary objectives of monetary policy are unaffected by globalisation, the appropriate strategic framework for analysis and policy formulation should remain the same. however, the analysis required for policy formulation will have to carefully take into account the various effects of globalisation on the dynamics of inflation, economic growth and asset prices. for example : in the a globalised economy, traditional measures of core inflation are even more difficult to interpret and use as indicators of underlying domestic inflationary pressures ; the estimates of potential output are more difficult to calculate in a robust manner ; and the measurement and usefulness of output gaps are subject to greater