The challenging times we are now experiencing provide an excellent opportunity to exchange thoughts on this topic that is of great interest to the ECB. More integrated financial markets are important for realising the full potential of the single market.
Central banks have been faced with the difficult task of striking a balance in their response in the current conditions to avoid longer-term overshooting of the inflation target in the event of a milder response, or a more severe recession in the event of a too strong response. How did they respond?