Monetary policy with transitory vs. permanently low growth
Disciplines
Text
English
ID: <
hdl:/2441/6gjj4t61tm90aauv9v241g1u29>
The recent economic slowdown in the euro area depends on supply-side and demand-side factors with different consequences on potential output. On the one hand, it may grow at a low pace for a long time; on the other hand, it may soon grow a bit faster. The ECB strategy has to adapt to these different possible outcomes. Anyway, we argue that the ECB has rooms for manoeuvre whatever the trend in output