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ECB’s Precision Stimulus Can’t Skirt Doubt on How Economy Works
At a time when European Central Bank stimulus is being ramped up beyond historical precedent, uncertainty about the economy may never have been higher. Two recent observations by the ECB on output and employment highlight how monetary policy is far from an exact science, underlining the challenge that President Mario Draghi and his colleagues will face in their two-day meeting starting Wednesday. In evaluating their targeted strategies to boost the euro area’s feeble inflation rate, they have to measure the economy -- and that’s the trouble. It starts with a paper published on July 1 by researchers Marek ... (full story)