“I particularly like to look at various rules that make a recommendation for the interest rate level with a view to core inflation or domestic inflation, taking the economy into account,” says Wieland.
The economic situation in the euro area as a whole is certainly factored into the deliberations and discussions in the ECB Governing Council, with the ongoing stagnation in Germany pulling down the average value for the eurozone. However, Wieland warned that the ECB should not attempt to make policy for individual countries beyond the average. “Incidentally, the effect of monetary policy on the economy is quite uncertain. Fine-tuning is not recommended anyway.”
RNZ: "Zinswende ist vertretbar" (€)