Buba's Weber on European inflation dynamics

In a speech 'European inflation dynamics and inflation convergence' given on 15 October Axel Weber of the Bundesbank said we still do not know enough about the factors that determine inflation persistence in the euro area and we cannot even be sure about the prevailing degree of inflation persistence.

"As regards inflation persistence, the credibility of monetary policy plays an important role. Since a credible monetary policy oriented to price stability is capable of stabilising inflation

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