Tomas Hirst on the State of ECB Policy and the Eurozone Economy
Macro Musings with David Beckworth
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Getting Inflation Back to 2% in a Timely Modest
The ECB has always said that we have a medium term approach, but without providing a precise definition. So it's not satisfactory to say inflation will be at 2% many years from now. We have to make sure that inflation is back to 2% within a reasonable time horizon and the governing council will decide exactly what that will be. And so I think it's a very good argument for why middle of this year, even though they knew this was an energy driven phenomena, they started raising rates. They were saying we're going to continue to raise rates until inflation is on downwards trajectory. But let's just play devil's advocate and imagine that what happens here is the ECB wants to chase up
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