Let’s not forget that inflation affects in particular the poorest and least advantaged members of society. The ECB has embarked on a series of non-standard measures to react to the crisis. What’s your initial assessment?
These had a positive impact on our macroeconomic preferences, including a clear drop in the long-term inflation trend and a decline in the volatility of inflation with a step-up in economic growth (Chart 4). The fluctuations around the trend are determined more by the severity of supply shocks and the nature of policy responses.