Comment: Has the ECB become more credible?

A recent New York Fed staff paper finds that market perceptions of the ECB's "inflation aversion" have improved significantly over the last six years, reflecting the idea that monetary policy has been guided by a dedication to price stability.

COMMENT BY CENTRALBANKNEWS

The perception of a central bank's inflation aversion is absolutely crucial to the achievement of its primary goal of ensuring low and stable inflation. This insight is both a standard theoretical result and common knowledge

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