The 2% Illusion

In his article Joachim Weeber, Nordakademie, Hochschule der Wirtschaft, Elmshorn, explains why it will be harder to achieve the ECB's 2% target inflation rate for the euro area in the medium term. Globalisation, demographic change and increasing digitalisation could push consumer price developments below this level. He also raises the question of an appropriate price indicator under the quantitative easing conditions created by the ECB. Asset prices in particular are likely to play a greater role in fiscal policy decisions.