ECB to Raise Inflation Goal to 2%, Sources Say

The video discusses changes in the European Central Bank's (ECB) inflation target, shifting from a cap of below but close to 2% to a more flexible 2% target. This change allows for overshooting when necessary, potentially leading to looser monetary policy. The ECB's approach is compared to the Federal Reserve's average inflation targeting. The video also anticipates the ECB's strategic review, which may address climate change and revise the inflation measure to better account for homeownership costs.

What role does climate change play in the ECB's new strategy?

What changes are expected in the inflation measure according to the text?