Monetary policy with transitory vs. permanently low growth

Christophe Blot (1) , Paul Hubert (1)

1 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

The recent economic slowdown in the euro area depends on supply-side and demand-side factors with different consequences on potential output. On the one hand, it may grow at a low pace for a long time; on the other hand, it may soon grow a bit faster. The ECB strategy has to adapt to these different possible outcomes. Anyway, we argue that the ECB has rooms for manoeuvre whatever the trend in output

Mots clés: ECB; Monetary Policy; Growth; Slowdown; ECB

Domaines: Economies et finances

Christophe Blot, Paul Hubert. Monetary policy with transitory vs. permanently low growth. [Research Report] European Parliament. 2018. ⟨hal-03404318⟩