ECB’s Cœuré says higher inflation target not solution to zero lower bound
Benoît Cœuré argues target would ‘impose permanent costs’ on economy
Raising the inflation target to 4% is not the right way to overcome the problems posed by the zero lower bound (ZLB), European Central Bank (ECB) executive board member Benoît Cœuré said on May 18.
Cœuré argued in favour of using unorthodox monetary policy measures, such as the ECB's asset purchase programme, to "exert direct influence on money long-term rates" when short-term rates are already at or below zero.
Addressing a conference on the ZLB in London, Cœuré rejected a host of other
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