Speakers
Objectives
Global inflation has continued to decline from its peak in 2022 but remains above central bank targets in much of the world. In the euro area, annual inflation eased to 2.8 percent in July. With inflation decreasing and approaching the 2% target, and global growth still modest, the big question is whether the euro area should continue to cut interest rates in the coming months, gradually returning to pre-crisis levels, or whether it should maintain a degree of monetary prudence.
This dilemma is exacerbated by the fact that services price inflation remains high due to rising nominal wages and stagnant productivity gains. In addition, some highly indebted countries continue to pursue expansionary fiscal policies, which may overstimulate demand, complicate disinflation efforts and create financial stress.
This session will explore how monetary policy can address this dilemma and address the challenges and concerns raised by the €3 trillion of excess liquidity.
Points of discussion
- How can we design a monetary policy that promotes stability and growth over the medium term?
- What are the challenges and concerns raised by the €3 trillion of excess liquidity in the euro area and how should they be addressed?