The ECB’s normalisation path
The ECB has fallen behind the curve over the last few months as it has stuck to an extremely expansionary stance based on model predictions that inflation would return to slightly below its 2% target within two years. The real problem is thus the nature of this approach, which can justify endless procrastination. In this […]
A transatlantic divide?
Inflation rates have spiked in many countries recently. Most attention is focused on the US, where some measures of inflation have now reached 5%, but even in the euro area one can find instances of countries – notably Germany – where inflation is now at 3-4%, clearly above the 2% target of the European Central […]
The rising cost of housing
Housing is a major expense for most families. But the index the ECB uses currently, the HICP (Harmonised Index of Consumer Prices), does not fully reflect the evolution of the cost of housing because it leaves out the costs borne by owners who live in their own homes. The ECB has recognised this problem[1] and […]