I will argue strongly that central banks should stop short of zero--that a low positive rate of inflation is optimal. There are two strategic reasons for choosing a low, positive rate, and both have been debated extensively in the economic literature. One involves the so-called zero bound on nominal interest rates; the other involves labor markets.
On the basis of this assessment, the Governing Council concluded that progress towards a sustained adjustment has been substantial so far and should continue in the period ahead, although some uncertainties persist. We therefore anticipate that after September we will reduce our monthly net asset purchases from € billion to € billion and will end our net asset purchases at the end of December.