The ECB decision to cut its benchmark interest rate in November 2013 has been severely criticised in Germany. Against this background, the President of the Bundesbank justified the ECB’s monetary policy stance in recent speeches. At the same time, however, he argued that this stance carries risks and has adverse effects. By noting this, he leaves it open to interpretation whether a more restrictive stance would be appropriate even if inflation is well within the target range. If this interpretation were to be correct, it would indicate a deviation from elements of the pre-crisis consensus, namely that policy makers should aim at a clear target and should justify their measures in a consistent way.
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