Swiss Economicblogs.org
The threat to the ECB’s inflation targets posed by the appreciation of the euro is being offset by strengthening growth in the euro area. The ECB should pursue its cautious exit strategy.The trade-weighted EUR has appreciated by 4.8% since the ECB’s June meeting. ECB models and Mario Draghi’s rule of thumb suggest that a stronger currency could lower euro area inflation by about 30-40bp in 2018-2019, all else being equal.But all else is not equal, and the euro area economy is in a very...
Read More »The ECB and the euro, from Amsterdam to Sintra
