losses for the ECB and try to assess inflation dangers stemming from the 3Y LTROs. In the same section, we also look at the …

normal inflation are present. These are the conditions which characterize the baseline scenario assumed here. [...] …

-term interest rate into an expected inflation and an ex-ante real interest rate component. The latter may be a useful indicator of … rate series and the stationary component of the real interest rate is estimated and shocks to expected inflation and the ex …-ante real rate are identified using the long-run restriction that only shocks to expected inflation have long-run effects on the …