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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessMNI BRIEF: EZ Inflation Target Too High, NCB Economists Claim
The European Central Bank should target a euro area average inflation rate of 1.5%, according to a paper by economists from the Bank of France, the Bank of Italy and Germany's Bundesbank, with optimal targets for France and Germany at 1.8% -- compared with the current average target of "close to, but below 2%" -- and just 0.8% for Italy.
"Targeting 1.9% (the current ECB objective) in Italy costs 3.5 EUR per year per person in Italy," co-author Prof. Klaus Adam of the University of Mannheim wrote on Twitter. "Looks small but still amounts to >200m EUR per year in the aggregate."
The ECB is considering raising its price stability objective to a symmetrical 2% target as part of the monetary policy strategy review due to report in September.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.