Making monetary policy fit for today and beyond: the ECB strategy review

09.25.2021 - By European Central Bank Play

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Our inflation objective and how price changes are measured, employment, climate change… These are just some of the topics we’ve looked at during our strategy review, the outcome of which we revealed in July.

In this episode of The ECB Podcast, our host Katie Ranger discusses the review with Chief Economist Philip R. Lane.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 25 September 2021 and recorded on 20 September 2021.

In this episode:

00:10 – Our strategy review

What is behind our recent strategy review and why we carried it out now.

02:26 – The new price stability objective

Why we have adopted the new price stability objective of 2% and why it’s important that it is symmetrical, clear and understandable.

07:20 – How to measure inflation

Who measures inflation and how, and why home ownership costs should be included in the price index.

10:49 –Employment and the strategy review

Why the employment situation is important for our monetary policy, and how our decisions impact jobs.

19:17 – Our guest’s “hot tip” for our listeners

Home in the world by Amartya Sen: the economist and philosopher recounts his first thirty years of life in a memoir.

This year’s ECB Forum on Central Banking on 28 and 29 September 2021 includes some interesting panel discussions, focussing on the future challenges for monetary policy.