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Franziska Fischer

11 November 2021
ECONOMIC BULLETIN - BOX
Economic Bulletin Issue 7, 2021
Details
Abstract
In the wake of the ECB’s new monetary policy strategy, a special survey was conducted among the panel of participants in the ECB’s Survey of Professional Forecasters (SPF). The aim of the survey was to gain an insight into how the participants in the regular SPF survey have assessed the new strategy and into whether it has already had, or will have, an impact on their forecasts. Overall, respondents considered the new strategy to be an improvement, identifying the clearer inflation target (2%) and explicit commitment to symmetry as key elements. Regarding the impact on macroeconomic forecasts, around one-third of respondents indicated that they had revised their point longer-term inflation expectations, and a slightly larger portion indicated that they had revised (up) the balance of risks surrounding those expectations in response to the new strategy. The results of the survey suggest there is a strong correlation between what respondents viewed as key aspects in the new strategy and what they viewed as key improvements compared with the previous strategy.
JEL Code
E37 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Forecasting and Simulation: Models and Applications
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
D84 : Microeconomics→Information, Knowledge, and Uncertainty→Expectations, Speculations