Skip to main content

ECB has too much faith in long-term inflation expectations

The key remaining barrier to bolder ECB policy support seems to be the Governing Council’s viewthat long-term inflation expectations are “well-anchored”. We have doubts over the usefulness ofsuch measures and expect the Bank to implement quantitative easing around the turn of the year aseither inflation expectations fall or inflation itself remains dangerously low regardless of expectations.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access