Euro area

Euro area: This currency area is classified as loose inflation targeting, because the ECB insists it has no target, only a definition of price stability.

Years Targets and attainment Classification
1999-2014 primary goal of price stability (definition revised and/or clarified 2003), inflation mostly a little above that definition, with wider divergences 2008, 2009 (below) and 2014 (below) but expectations remaining broadly anchored; monetary policy operated through short term interest rates, also large-scale refinancing operations from 2008 but quantitative easing only from 2015; exchange rate floating; reference value (not target) for money loose inflation targeting LIT

Selected IMF references: SR 2006 pp17-24; SI 2009 chI; SR 2010 p33; SR 2012 pp10-18; SR 2014 pp9-11.

Additional sources: ECB (1999, 2003).

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