I don’t see that argument as being very convincing when it comes to communication. The communication of the Governing Council has to remain in line with facts and an evolving reality. There’s always the temptation of gradualism in monetary policy. Too much gradualism in monetary policy bears the risk of larger market adjustments when the decision is eventually taken.
Along the way I also hope to highlight some gaps in economists’ collective understanding about LSAPs, and perhaps to provoke some further thought and research on these questions. However, let me begin by setting the context. The point of departure for any analysis of monetary policy is our dual mandate – to foster maximum employment and price stability.