The vice-president of the European Central Bank has said inflation targets should not be raised to "create more room above the lower bound to respond to future recessionary episodes".

Leading economists such as Olivier Blanchard and Paul Krugman had floated the possibility of raising the target to perhaps 4%, Vítor Constâncio told an audience in Chicago on November 4.

But doing this "at a time when outcomes have been below the current objective for a number of years" risked damaging central