Is eight years of applying measures initially considered exceptional enough? Answer that for yourselves. On the contrary, the minutes of the last ECB meeting reflect the institution’s request for patience before proceeding with monetary normalization. Furthermore, in the case of the asset purchase program, the ECB believes it should be granted greater flexibility (in price, asset nationality, and even issued capital) so that it can be carried out as designed. Its implementation is, in principle, scheduled for this entire fiscal year with €60 billion in monthly paper purchases. As you can see, there is no rush.
Who is right? Naturally, both entities. The first, the US monetary authority, because economic data points to full employment with core inflation above target levels and risks that the Trump administration’s fiscal policy may be expansive. We have moved from stating that monetary policy is expansive to warning of the risks of keeping it excessively loose.
