The main negative possibility seems to come from widespread contagion of exchange‐rate depreciation to inflation and expectations. A second risk stems from the reversion of noncore inflation to historical averages. Third, an upsurge of aggregate demand pressures could occur, in particular considering uncertainty over the degree of slackness in the economy.
European Central Bank: Press Conference - introductory statements  Introductory statements given by Mr Willem F Duisenberg, President of the European Central Bank, and Mr Christian Noyer, Vice-President of the European Central Bank, at the Press Conference held in Frankfurt on 13 April 2000.