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The 2% Illusion

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  • Joachim Weeber

Abstract

In his article Joachim Weeber, Nordakademie, Hochschule der Wirtschaft, Elmshorn, explains why it will be harder to achieve the ECB's 2% target inflation rate for the euro area in the medium term. Globalisation, demographic change and increasing digitalisation could push consumer price developments below this level. He also raises the question of an appropriate price indicator under the quantitative easing conditions created by the ECB. Asset prices in particular are likely to play a greater role in fiscal policy decisions.

Suggested Citation

  • Joachim Weeber, 2017. "The 2% Illusion," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(21), pages 25-31, November.
    • Handle: RePEc:ces:ifosdt:v:70:y:2017:i:21:p:25-31
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    File URL: https://www.ifo.de/DocDL/sd-2017-21-weeber-inflationsziel-2017-11-09.pdf
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    References listed on IDEAS

    as
    1. Salomon Fiedler, 2017. "Sprunghafte Zunahme der Inflation als Folge von Basiseffekten und Ölpreisanstieg [Rapid Increase in Inflation as a Result of Base Effects and the Rise of Oil Prices]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 97(1), pages 75-76, January.
    2. Bernd Braasch, 2010. "Symmetrischere Geldpolitik und Finanzstabilität," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 90(8), pages 516-523, August.
    3. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
    4. Goodhart, Charles, 2001. "What Weight Should Be Given to Asset Prices in the Measurement of Inflation?," Economic Journal, Royal Economic Society, vol. 111(472), pages 335-356, June.
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