Therefore, Europe is faced with a situation in which the public’s perception that prices will increase by about 2 percent might be impaired, or in other words, a situation in which there is a risk that 2 percent inflation expectations might become de-anchored. The easing by the ECB was made in response to such risk. B.
[20] See Coibion, O. and Gorodnichenko, Y. (2015), “Is The Phillips Curve Alive and Well After All? Inflation Expectations and the Missing Disinflation”, American Economic Journal – Macroeconomics; Malmendier, U. and Nagel, S. (2016), “Learning from Inflation Experiences”, Quarterly Journal of Economics.