ECB Knot making comments

  • Side effects from QE are bigger than from negative rates
  • Wise to have variation a band around inflation goal
  • Would not give up on inflation of below but close to 2%
  • There are very good reasons why 2% inflation is preferable to 1% because you have more room for maneuver
  • GDP numbers confirm no need to panic about recession (well Germany just barely stayed positive with 0.1% growth. It is not exactly booming)