It is well understood by all that a genuine single market in Europe has to be buttressed by appropriate and credible institutions. But political sovereignty and the market do not perfectly overlap so the question in Europe is which institutions are most appropriate to uphold as much freedom of the market as possible for different members.
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.