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Aug 29, 2014
Why Draghi Changed His Tone at Jackson Hole
Draghi's speech at Jackson Hole was different compared to his last speech at the ECB's governing council meeting. The ECB has a mandate of inflation just under two percent. What Draghi always underlines in this speeches is that, while inflation in the short run may deviate from the target, inflation expectations are at just below 2 percent. What you can see in the next graph is that inflation expectations have actually been declining quite fast. This probably was the reason Draghy changed his tone.
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