the correct level at present, and as to any further cut, we will have a good, in - depth discussion in the governing council. one point that i think is particularly relevant is that although we can reduce interest rates further, the side effects of monetary policy are becoming more and more evident and more and more tangible. that ’ s why we have started to say that other actors have to jump in. does tiering help or impede the process of banks restructuring in ways that might offset the negative effects of negative interest rates? this is a good question. tiering is some relief, but the reasons for the banks ’ low profitability are different. low interest rates are having an impact, but they ’ re not the main cause of european banks ’ problems, which are much more structural. some have argued that even tiering, by offering relief, delays the implementation of the instruments that could improve the european banks ’ profitability. that is a big problem. we are in a changing paradigm. low interest rates are going to be around for longer, and this has very little to do with monetary policy. monetary policy has to adapt to the lower level of the natural interest rate, and we are going to hit the zero lower bound much more often than in the past. this has implications for monetary policy, but also for the banking industry, for the insurance business, for everyone. following the restart of the app, philip lane said recently that the question of a shortage of bonds “ may not become a problem for an extended period of time, and in any case not for at least as long as we can project bond availability conditions with some confidence. ” how long is an extended period of time? our calculation is that we have enough time. but there are some who might argue that the app was only introduced at the level it was [ €20 billion per month ] because any higher and you run out of things to buy very quickly indeed … i don ’ t think so. our assessment was that €20 billion was enough in terms of the current situation and the evolution of the ecb ’ s balance sheet, and not just in terms of the restrictions that we could hit. so there is still further headroom should it be necessary. is that the message? headroom is there, and €20 billion per month dovetails perfectly with the headroom we have. it will be in place for a period of time. this is a package, and the concept of a package is that you can

. they do not want to live on subsidies. they want to work and expand their lifetime opportunities. today after the crisis, governments know how to respond to their quest, and how to create an environment where their hopes have a chance. they should do so : for the future of their countries ’ youth and of their democracy. 1 see bell, d. and d. g. blanchflower ( 2011 ) : young people and the great recession. 2 based on the latest eurostat data. 3 another alternative measure of unemployment for ireland has been recently discussed by byrne, s. and t. conefrey ( 2017 ) : “ a non - employment index for ireland ”, economic letter series, vol 2017, no. 9, central bank of ireland. 4 for example : gregg p. and e. tominey ( 2005 ) show that an early period of unemployment can lower wages by up to 20 % at the age of 42 ; see gregg p. and e. tominey ( 2005 ), “ the wage scar from male youth unemployment ”. labour economics 12 ( 4 ) : 487 – 509. 5 research shows that a person exposed to a recession between the ages of 18 – 25 years has little confidence in public institutions. see giuliano p. and a. spilimbergo ( 2009 ) : “ growing up in a recession : beliefs and the macroeconomy ”, nber working paper no. 15321, september. 6 see coad a., s. - o. daunfeldt, d. johansson and k. wennberg ( 2014 ). “ whom do high - growth firms hire? ” industrial and corporate change, volume 23 ( 1 ) : 293 – 327. 7 see franses, p. h. ( 2014 ), “ when did nobel prize laureates in literature make their best work? ” creativity research journal, 26 ( 3 ), 372 – 374 ; franses, p. h. ( 2016 ), “ when did classic composers make their best work? ”, creativity research journal, 28 ( 2 ), 219 – 221. 8 see albert c., c. garcia - serrano and v. hernanz ( 2005 ) and p. lopez - garcia and j. m. montero ( 2011 ), and bentolila, s. and dolado, j. and jimeno, j., ( 2012 ), “ reforming an insider - outsider labor market : the