However, the fact that not only high, but also such low, inflation entails costs and risks is sometimes overlooked. Moderate inflation lubricates the economy by facilitating adjustments in relative prices and, above all, in wages. Price and wage adjustments are among the most important instruments for companies to improve their competitiveness.
We do not consider that necessary at present, because the low level of inflation is partly due to temporary factors and we believe in the recovery: inflation should therefore increase. But we will continue to monitor developments very closely and act if required. How can QE help to increase lending? That is the question!