Abstract
The ongoing policy strategy review presents a unique opportunity for the ECB to examine how to best employ its immense power to fulfil its mandate. Two challenges require urgent attention. First, the “lowflation” problem – the outcome of overly tight policies that allowed inflation to drift considerably below 2% over the past several years. Second, the impairment of the monetary policy transmission mechanism in the euro area – a key factor behind the divergence of economic performance of different Member States that threatens the viability of the EMU. The ECB has the authority and tools to address these challenges, within its mandate, with suitable corrections in its monetary policy strategy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
