Among the many ways in which the term “New Normal” may be analysed, I am happy to see that today’s papers tackle three questions that are of the utmost relevance in my view. The first concerns the optimal inflation target in a low rates environment.
I am sure that the keynote speech by Professor Galí as well as the papers that will be presented in the opening session will help us deepen our understanding of the implications of a low interest rates and low inflation environment for monetary policy. A second issue is about the strategies that central banks should follow: should bygones be bygones?