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The Inflation Target Trap

CEPS 2019.02.28
페이스북
Noting that the recovery of the euro area is gathering strength and that deflation no longer seems a danger, CEPS Director calls upon the ECB in this Commentary to exit its emergency policies now. Central banks have a problem: growth in much of the world is accelerating, but inflation has failed to take off. Of course, for most people, growth without inflation is the ideal combination. But central banks have set the goal of achieving an inflation rate of “below, but close to 2%”, as the European Central Bank puts it. And, at this point, it is hard to see how that can be achieved.

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