J.L.M. Campuzano | The ECB calculates that its extreme expansionary monetary measures have contributed nearly two points to European growth since 2014. The question now is whether the benefits of maintaining them outweigh the risks of prolonging excessively lax financial conditions too long.
central banks’ inflation target
There are various ways of measuring the volatility of equities, but for me the most representative are: a) what is known in the Anglo-Saxon world as the fear index, VIX, and b) the ample range formed by the intra-day movement of an asset price. In other words the difference between the maximum and minimum level of a share price or index within the same day. As Víctor Peiro from GVC Gaesco points, if we look at the performance of this volatility index, both for the US and European indices, we can see we are close to record lows.
In the US, many, like Blanchard and Krugman, have for long advocated a higher inflation target as a means of getting the economy ‘moving’.