Bearing in mind that the pace of economic recovery is likely to be modest, with uncertainty over when the spread of COVID-19 will subside, it is difficult to project at this stage that the inflation rate will gather momentum toward approaching the 2 percent price  11  stability target, with the output gap shifting to excess demand and inflation expectations rising.1  Chart 12  Output Gap and Inflation Expectations Output Gap  6  Synthetic Indicators of Inflation Expectations  %, % points  Labor input gap  Capital input gap  Output gap  2.0  y/y % chg. Firms, households, and experts (QUICK Survey) Firms, households, and experts (Consensus Forecasts)  4  Firms, households, and experts (inflation swap rate)  1.5 2  1.0  0  -2  0.5 -4  -6 CY85 1985 88  91  94  97  00  03  06  09  12  15  18  0.0 CY 2010 10 11  12  13  14  15  16  17  18  19  20  Note: In the right panel, inflation expectations of firms are taken from the Tankan (output prices DI), and those of households are taken from the Opinion Survey on the General Public's Views and Behavior (average of responses for annual inflation expectations between minus 5 percent and plus 5 percent).
Andreas Dombret: Six months of European banking supervision – what does this mean for “less significant institutions”? Speech by Dr Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank, at the “Verbandstag der Sparda-Banken”, Frankfurt am Main, 22 May 2015. * 1.