Their frequent criticisms are always the same: we worry too much about inflation, both now and in the future, and, if we didn’t worry so much, we could all enjoy lower short-term interest rates today.
At the same time, monetary liquidity accumulated prior to the period of financial market tensions remains ample and may facilitate the accommodation of price pressures in the euro area. Looking at M3 components, annual M1 growth moderated further to 2.9% in February 2011, while the growth of other short-term deposits and marketable instruments has increased.