We can’t, because it takes time for the effects of monetary actions to work their way through the economy. However, this approach to policy provides monetary support which, over time, will help output and employment to grow at their potential. So, by focussing on the inflation-control targets, the Bank is doing the right thing for the economy.
19 Natoli F., L. Sigalotti (2016), ‘An indicator of inflation expectations anchoring’, Banca d’Italia, mimeo Neri S., A. Notarpietro (2014), ‘Inflation, debt and the zero lower bound’, Banca d’Italia Questioni di Economia e Finanza (Occasional Papers), No. 242 Rey H. (2013), ‘Dilemma not trilemma.