Central Banks
ECB Must ‘Show Its Teeth’ to Reach Price Goal, Holzmann Says
- Inaction risk dwarfs threat from overtightening, Holzmann says
- Public needs to feel inflation convergence in everyday lives
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The European Central Bank should actively fight inflation until people feel price stability in their everyday lives, according to Governing Council member Robert Holzmann.
“The risk of over-tightening seems dwarfed by the risk of doing too little,” Holzmann told a conference Monday in Budapest. “Monetary policy must continue to show its teeth until we see a credible convergence to our inflation target.”