ECB's Villeroy: ECB might let inflation rise above 2% for some time

Author: Justin Low | Category: Central Banks

Further comments by Villeroy

  • Inflation target should be perceived as flexible, symmetric
  • That means numerical objective is a target, not a ceiling
  • Medium-term inflation target cannot ignore the past
First, he says that one should not assume that they will follow the Fed's strategy and then he delivers such a headline remark. I reckon we can all look past the semantics because in the race to the bottom, nobody wants to get left behind.

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As for how realistic 2% inflation would look like in the euro area, let's just say that a glance at the core inflation over the years will tell you all you need to know:


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