Such Knightian uncertainty means that past experience is not of great value when deciding on appropriate policy measures. In such an environment, policy has to strike a difficult balance between short-term and long-term needs. More specifically, in the case of monetary policy, there is, on the one side, a need for resolute action to counter the consequences of the crisis.
* * * I am very happy to appear again in person before this Committee to present the ECB’s Annual Report for 2021.1 The last time I joined you here in Brussels physically was 1 April 2019 and many things have happened since then. The Annual Report and today’s hearing are an important pillar of the ECB’s accountability relationship with this Parliament.