Details
- Identification
- Discussion Paper 193
- Publication date
- 28 July 2023
- Authors
- Lucian Briciu | Lukas Vogel | Stefan Hohberger | Luca Onorante | Beatrice Pataracchia | Marco Ratto | Directorate-General for Economic and Financial Affairs
Description
This paper analyses two central elements of the ECB’s 2021 monetary policy strategy review in an estimated open-economy structural macroeconomic (DSGE) model of the euro area: (1) explicit symmetry of the 2% inflation target, and (2) commitment to persistent monetary accommodation when interest rate are close to the lower bound. Both elements are found to increase the room for manoeuvre of monetary policy in a low-rate environment and do not impede the decisive response to inflationary shocks.
Information and identifiers
Discussion Paper 193. July 2023. Brussels. PDF. 28pp. Tab. Graph. Bibliogr. Free.
KC-BD-23-010-EN-N (online)
ISBN 978-92-68-01753-1
ISSN 2443-8022 (online)
doi:10.2765/9371 (online)
JEL classification: E30, E52, E58
Disclaimer
European Economy Discussion Papers are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs, or by experts working in association with them, to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.
