Long-term inflation expectations in the euro area remained firmly anchored even at the height of the global financial crisis and in the midst of the euro area’s sovereign debt crisis. This was a remarkable achievement.
Today’s concrete uncertainties stem from the continued trade tensions, vulnerabilities in the emerging market economies and financial market volatility. They are amplified by analytical uncertainties related to the functioning of the economy and the operation of economic theories, which we use daily in formulating our policies. These uncertainties are related to e.g.