Titolo Monetary policy in the time of Covid-19, or how uncertainty is here to stay Periodico Politica economica Anno: 2021 - Fascicolo: 3 - Pagina iniziale: 313 - Pagina finale: 338
The COVID-19 crisis has compounded the uncertainty that has come to characterise the European economy. We explore how this uncertainty manifests itself in terms of European Central Bank decision-making and the long-run challenges the ECB faces. Confidence in ECB actions will come from the contingency scenarios it considers and communicates on, and from the adoption of potential policies for a wide range of such scenarios. Greater clarity around the ECB’s inflation target and surrounding tolerance bands would also be beneficial