Explainer – ECB to soul-search over policy goals

Euronews | Dec 4, 2019 at 4:04 PM
  • The European Central Bank will conduct an overarching review of its policy strategy soon, looking at everything from the definition of its inflation target to fighting climate change.
  • The ECB has missed its target — price growth of below but close to 2% — since 2013 and the euro zone at one stage flirted with deflation, like kryptonite for indebted governments and companies because it increases the real value of what they owe.
  • The ECB has flexibility in defining price stability, however, and changed its definition following its only previous such review in 2003.