ECB's Lagarde Says 2% Inflation Target Is 'Not a Ceiling'

The ECB has adopted a new monetary policy strategy, aiming for a 2% inflation target over the medium term. This replaces the previous target of below, but close to 2%, removing ambiguity and clarifying that 2% is not a ceiling. The strategy also explicitly considers climate change and the carbon transition. The ECB believes this approach is clearer, simpler to communicate, and well-balanced.

What is the new inflation target set by the ECB over the medium term?

• 1%

• 2.5%

• 1.5%

• 2%

What was the previous inflation target formulation by the ECB?

• Exactly 2%

• No specific target

• Below, but close to 2%

• Above 2%

How does the new ECB strategy differ from the previous one?

• It introduces a new currency.

• It focuses on short-term goals.

• It removes ambiguity about the target.

• It sets a lower target.

What does the ECB's new strategy explicitly account for?

• Technological advancements

• Climate change and carbon transition

• Trade agreements

• Population growth

Why is the 2% target considered beneficial according to the ECB?

• It is easier to achieve.

• It is the highest possible target.

• It is clear, simple, and balanced.

• It is a compromise between different economic theories.