I doubt that serious inflation forecasts can be derived at this horizon given the uncertainty surrounding asset price boom periods.28 Thus I fully share the view that the longer horizon in inflation targeting is basically a substitute for a more structured assessment of risks to price stability.29 This risk assessment is part of the ECB’s monetary analysis.
Sapir divided the EU-15 countries into four groups based on their efficiency and equity: the Mediterranean model (low equity and low efficiency); the Continental model (high equity and low efficiency); the Anglo-Saxon model (low equity and high efficiency); and the Nordic model (high equity and high efficiency). In reality, the groupings are far from being homogenous.