EPV - ECB Signals Easing But What's Left In The Policy Arsenal?
A central banker's nightmare is losing control of inflation expectations. Whereas decades ago, the challenge facing major central banks was reining in overly high inflation expectations - a process that ushered in central banks' independence and inflation targets - the European Central Bank's (ECB) challenge today is reviving unduly low expectations up toward its stated aim of "inflation rates below, but close to, 2% over the medium term." ECB president Mario Draghi took a step in addressing this challenge at the 25 July Governing Council meeting, promising the council will act with determination at its