ECB Says QE Shored Up Inflation Expectations and Its Credibility

  • Counterfactual scenario shows inflation expectations falling
  • ECB researchers say QE proves ECB’s commitment to mandate

Without the European Central Bank’s program of quantitative easing, inflation expectations in the euro area would have drifted away from the official target, giving rise to doubts about the institution’s credibility, a new study by ECB researchers says.

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