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below the ECB’s inflation target. Therefore, a readjustment of the infl ation target seems unjustified. Furthermore, as the … ECB can expect inflation to return to its target, it possibly can accelerate tapering its unconventional monetary policy …
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Following the twin crises of sovereign debt and COVID-19, the ECB risks being stuck in a situation of fiscal dominance, in which monetary policy is subordinated to the needs of finance ministers. A strong post-COVID-19 recovery may increase inflationary pressures, requiring a shift towards a...
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that it is willing to accept a transitory period of moderate inflation overshoot in its efforts to push inflation upwards … employing a simple Phillips curve model. The results point to the conclusion that the average inflation rate over the business … strategy seems therefore justified to realign inflation and inflation expectations with the target rate. …
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inflation, but despite their efforts, core inflation remains stubbornly below the desired two per cent. However, central banks …
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This paper highlights that the EMU transition process itself can pose challenges to individual accession countries and draws policy implications for ERM II. Differences in financial market development and international liabilities underscore the risks and benefits of ERM II, and may lead to...
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