It took nine years for real per capita GDP to surpass its 2007 level. Likewise, euro area inflation has stubbornly remained below the ECB’s aim for much of the past decade. Throughout this period, the ECB has acted decisively to support euro area demand and raise inflation onto a sustainable path towards our aim of below, but close to, 2% over the medium term.
This has included lowering the key ECB rates to record low levels and adopting a wide range of non-standard monetary policy measures. By contrast, the contribution from fiscal policy to macroeconomic stabilisation in the post-crisis period has been muted at best.