The euro zone’s current heterogeneity does not simplify the ECB’s work

The greater the euro-zone countries’ heterogeneity, the more the ECB’s current choices will be criticised in a large number of countries, those whose economic situation does not call for the ECB’s very expansionary monetary policy. Euro-zone countries’ heterogeneity currently apply to: Growth in wages and labour costs, and therefore to the outlook for inflation; Countries’ cyclical position (unemployment, growth); Banks’ situation and credit growth; Asset prices (real estate, share prices).