(Bloomberg) — European Central Bank policy maker Pablo Hernandez de Cos added his support to arguments for a Federal Reserve-style strategy that allows officials to temporarily overshoot their inflation goal.
Echoing comments a day earlier by President Christine Lagarde, the Bank of Spain governor said it’s worth examining a more “symmetrical” inflation target. The ECB should make it clear “that the degree of acceptance for inflation deviations above the target will be the same as when such deviations are below.”
Pablo Hernandez de Cos
Photographer: Zach Gibson/Bloomberg
His remarks are the latest signal that the ECB’s first strategic review in almost two decades will likely conclude with a recommendation to change the current inflation goal of “below, but close to, 2%.” Officials have increasingly voiced concern that such phrasing emboldens calls for tighter policy too soon, before price