In a speeched titled “Past and future of the ECB monetary policy”, ECB Vice President Vitor Constancio reviewed the four phases in the ECB journey since 1999. They are the beginning, pre-crisis, global financi crisis and great recesssion, and ultra-low and QE. And after going through the journey, the “new unconventional instruments, along with forward guidance, negative rates and reverse repos belong now to the monetary policy toolkit to be used whenever necessary.” And ECB will have “no excuse” no to fulfil its mandate.
ECB has also joined the “community of central banks of other major jurisdictions using flexible inflation targeting regimes and asset purchases as non-standard measures.” ECB is now a “modern, effective and prepared central bank to serve the goals of monetary union.”
