Ilustratīvs attēls
I am one of those old-fashioned (?) persons who likes a strong, independent central bank with a clear mandate towards low inflation. Thus, I have been happy with the European Central Bank and its “unambiguous primary mandate” to secure “inflation close to but below 2% in the medium term”.
This happiness has now changed to concern. Back in July 2021, the ECB changed its monetary policy strategy and now aims at a target of 2% inflation, a target that is symmetric (i.e. 3% inflation and 1% inflation are equally bad; previously 3% was worse than 1%). This may not sound like big potatoes but it is a loosening of monetary policy. More doveish, less hawkish.
That current inflation is higher than 2% is a fact that I think everyone here is all too well-aware of, see Figure 1, but also the rate for the Eurozone as a whole is at an all-time high at 4.9% in November 2021, see Figures 1 and 2. Price stability?
