However, non-standard policy measures have alleviated this constraint to some extent.
A reassessment of the ECB’s monetary policy strategy is all the more necessary given both the long-term low inflation – or ‘lowflation’ – and the damage wrought by the Covid-19 pandemic.1 The strategy review will cover a wide range of subjects, including climate change and digitalization, and it is supported by in-depth analyses of the forces that drive inflation dynamics today – or rather, slow them down.