"To my mind, the ECB strategy offers a good degree of flexibility", Wieland said in an interview with the "Frankfurter Allgemeine Zeitung".
In 2003, the Governing Council clarified in the pursuit of price stability it aims to maintain inflation rates below, but close to two percent. For some time now, a debate has been going on whether inflation could be structurally lower due to factors such as globalization, digitalization, and the demographic change, the FAZ reports. Recently, Hyun Song Shin, Economic Adviser and Head of Research at the Bank for International Settlements (BIS), suggested thinking about a lower inflation target.
However, according to Wieland, there is no need for that. "It has not been defined how close to two percent the objective is."
FAZ: "Abschied vom magischen Zwei-Prozent-Ziel?" (Farewell to the magical two percent objective?)