The ECB Podcast – Inflation: on porridge, prices and the new normal
What do porridge and prices have in common? How do music and video streaming affect inflation? And is low inflation the new normal? Our host Michael Steen discusses with guests Christiane Nickel, Frank Smets, and ECB Chief Economist Philip R. Lane.
In this episode:
(00:45) Keeping prices stable
Why should prices go up, what is the link between wages and prices, and how does working towards our inflation target help to stabilise the economy?
(12:07) The new normal
How are changes in price measured, what factors drive inflation, and how do globalisation, demographics and e-commerce affect inflation?
(23:20)Forecasting inflation
Why do central banks need to provide accurate forecasts, how are these forecasts produced, and why can this process be challenging?
Published on 31 October 2019 and recorded on 10 and 14 October 2019.
Further reading
Explainer: Why are stable prices important?
https://www.ecb.europa.eu/explainers/tell-me-more/html/stableprices.en.html
Conference: Inflation in a changing economic environment
https://www.ecb.europa.eu/pub/conferences/html/20190923_inflation_conference.en.html
Speech: Monetary policy and below-target inflation
https://www.ecb.europa.eu/press/key/date/2019/html/ecb.sp190701~0c1fa3c8fc.en.html
Research: Low inflation in the euro area: causes and consequences
www.ecb.europa.eu/pub/pdf/scpops/ecbop181.en.pdf
Research: Expert group studying the causes of low inflation (LIFT)
https://www.ecb.europa.eu/pub/economic-research/research-networks/html/researcher_lift.en.html
Research: The impact of global value chains on the euro area economy
https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op221~38185e6936.en.pdf
Publication: Macroeconomic projections
https://www.ecb.europa.eu/pub/projections/html/index.en.html
European Central Bank website
www.ecb.europa.eu/
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The views expressed are those of the speakers and not necessarily those of the European Central Bank.
