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Learning from the European Central Bank's policy mistakes

The Sound of Economics

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Is the European Central Bank's Inflation Forecast Really Reliable?

The european central bank concluded a monetary strategy review. The second bullet point says that the so called cost of honer occupied housing, which is currently not included in the inflation indicator published by urostat. And since housing costs are rising much more rapidly than average prices, had they included, for example, what they proposed half a year ago in their forecast, then they would have concluded that inflation is a target or even above target.

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