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The primary objective of the ECB's monetary policy is to maintain price stability. The ECB aims at inflation rates of below, but close to, 2% over the medium term.
I'd say target is more accurate.
Last year's inflation is water under the bridge.
Now, if your inflation rate systematically undershoots during slumps, and systematically overshoots during booms, then it would indicate that you need more fiscal policy in your policy mix - because fiscal policy works directly on the real economy, while interest rate policy works only at one remove, if at all.
- Jake Friends come and go. Enemies accumulate.
1.8% is good, 2.3% not.
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