Current monetary policy Problem 10 in Chapter 4 asked you to consider the current stance of monetary policy. Here, you are asked to do so again, but with the additional understanding of monetary policy you have gained in this and previous chapters.

Go to the website of the ECB and download either the press release you considered in Chapter 4 (if you did problem 10) or the most recent press release of the Governing Council.

a. What is the stance of monetary policy, as described in the press release?

b. Is there evidence that the GC considers both inflation and unemployment in setting interest rate policy, as would be implied by the Taylor rule?

c. Does any of the language of the press release seem to be aimed at increasing the credibility of the ECB (as committed to low inflation) or at affecting inflation expectations?