ECB's Schnabel says labour costs possibly indicate 2nd round inflationary effects

ECB board member Isabel Schnabel is speaking in the US, in a panel discussion at 39th Annual National Association for Business Economics' (NABE) Economic Policy Conference, "Orienting Policy for a Polarized World", in Washington, D.C.

Not a lot from her. She did say that the rise in labour costs is possible indicative of second-round effects on inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term.

On the banking sector woes:

• at this point it appears as if we have somewhat smaller banking problems than we are seeing in the US

• we cannot exclude that banking troubles could have a 'disinflationary effect', which could have monetary policy implications

• my suspicion is that the energy impact will to drop out of core inflation quickly

EUR not doing much at all: