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Monetary policy with transitory vs. permanently low growth

Author

Listed:
  • Christophe Blot

    (Observatoire français des conjonctures économiques)

  • Paul Hubert

    (Observatoire français des conjonctures économiques)

Abstract

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

Suggested Citation

  • Christophe Blot & Paul Hubert, 2018. "Monetary policy with transitory vs. permanently low growth," Sciences Po publications info:hdl:2441/6gjj4t61tm9, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/6gjj4t61tm90aauv9v241g1u29
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    References listed on IDEAS

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    Keywords

    ECB; Monetary Policy; Growth; Slowdown;
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