Some commentary around the Eurozone raises the possibility that low inflation the EZ is not entirely a mistake, but is to some extent chosen. I doubt this. But it is a perfectly arguable position. In view of that, now might be a great time to issue a new ‘clarification’ of the price stability objective to remove the ‘close to, but below’ words that qualify the 2 per cent number. That would eliminate the chance that outside observers thought that the minority conservatives on the ECB GC were actually targeting a preferred number substantially below 2 per cent. Given the historical range of inflation numbers in EZ member states, 1 per cent is ‘close to’ 2 per cent. But actually far too low.

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