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Draghi’s Inflation Gap Dashboard Points to Stimulus Extending
by Simon Kennedy
Bloomberg.com
(Bloomberg) — Federal Reserve Chair Janet Yellen has her labor-market dashboard to help shape policy.
For President Mario Draghi, the European Central Bank’s analog may be an emerging inflation dashboard — tracking the distance between the ECB’s goal of consumer-price growth just below 2 percent and its own projections.
Right now, with the ECB set to roll out its 1.1 trillion-euro ($1.2 trillion) bond-buying plan, the dashboard is flashing the need for stimulus.
“If the inflation gap widens, and the monetary-policy stance remains unchanged, it follows that there is a ‘missing stimulus’ to which we may need to respond,” Peter Praet, the ECB’s chief economist, said in a speech last month.
Continue Reading at Bloomberg.com…
Source: http://financialsurvivalnetwork.com/2015/03/draghis-inflation-gap-dashboard-points-to-stimulus-extending/?utm_source=rss&utm_medium=rss&utm_campaign=draghis-inflation-gap-dashboard-points-to-stimulus-extending
