The observation that the policy rate has been much less volatile in the euro area than in the US can certainly not provide reliable information on the strategy of the two central banks, nor can it prove that the monetary policy of the ECB has been too gradual, or not sufficiently active.
To answer these questions, it is crucial to assess policy moves against the prevailing state and structure of the respective economy. Some early research undertaken by ECB watchers already addressed this topic. 1 Some more recent work undertaken by ECB staff has provided further insights that I believe are worth discussing today.