Because the point about headline inflation is so important, I would like to illustrate it further with simulations of FRB/US, the model of the U.S. economy created and maintained by the staff at the Federal Reserve Board. To keep the experiments as clean as possible, I assume that the economy begins at full employment and with both headline and core inflation at desired levels.
As a result of this continued growth, we in the Governing Council of the ECB confirmed at our meeting last month that we are confident the sustained convergence of inflation to our inflation aim will proceed. As a result, net purchases under our asset purchase programme ended last month.