​ECB’s Inflation Strategy: A Cautious Approach – ​Don’t Overreact to Sub-2% Inflation​

The ECB is currently reviewing its long-term monetary strategy, including the effectiveness of quantitative easing (QE). Over the past decade, the ECB injected €7 trillion into the system through QE and other tools. While QE proved effective during crises, Vujcic warned that using it for extended periods to boost inflation yields diminishing returns. He suggested future QE would require a higher threshold for deployment, especially given concerns over potential asset bubbles and central bank balance sheet risks.

(Disclaimer: This slideshow has been sourced from Reuters)