ECB’s Stark contests IMF paper
In a debate at the Committee on Economic and Monetary Affairs of the European Parliament and national parliaments on Tuesday, Jürgen Stark, a member of the executive board of the European Central Bank, strongly opposed the notion of a permanently higher inflation target.
In relation to an IMF report by Oliver Blanchard last month that advised central banks to set a target for inflation at 4%, Stark acknowledged this would leave more room for monetary policy to react to large adverse shocks. But
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