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ECB’s De Cos Backs Fed-Style Strategy of Inflation Overshoot

  • Bank of Spain governor echoes comments by President Lagarde
  • ECB is following Federal Reserve with a strategic review
Pablo Hernandez de Cos

Pablo Hernandez de Cos

Photographer: David Paul Morris/Bloomberg

European Central Bank policy maker Pablo Hernandez de Cos added his support to arguments for a Federal Reserve-style strategy that allows officials to temporarily overshoot their inflation goal.

Echoing comments a day earlier by President Christine Lagarde, the Bank of Spain governor said it’s worth examining a more “symmetrical” inflation target. The ECB should make it clear “that the degree of acceptance for inflation deviations above the target will be the same as when such deviations are below.”