The public could falsely interpret such a form of policy coordination as the attempt to negotiate the ECB’s monetary policy stance with other policymakers. This might hinder the Eurosystem’s prompt response to shocks that threaten the maintenance of price stability. The Eurosystem should always take into account all available information, not just the information on other intended policy actions.
See Andrew Figura and Chris Waller (2022), “What Does the Beveridge Curve Tell Us about the Likelihood of a Soft Landing?” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, July 29), https://doi.org/10.17016/23807172.3190; and Olivier Blanchard, Alex Domash, and Lawrence H. Summers (2022), “Bad News for the Fed from the Beveridge Space,” Peterson Institute for International Economics, Policy Brief 22-7 (Washington: PIIE, July), https://www.piie.com/sites/default/files/documents/pb22-7.pdf.