Ball and Sheridan also find that inflation-targeters improved by somewhat more than non-inflationtargeters, but they attribute this finding to the phenomenon of “ regression toward the mean” rather than to any benefits of formal inflation-targeting per se.
Recently, the Governing Council has become more confident about the firmness of the European recovery. As price pressures in the euro area increased, we modestly recalibrated the PEPP in September. So to complete the circle. On the first slide I showed you that the pandemic-induced inflation gap is closing.