02249nam a2200277 a 4500 1/51405 080128s2008 be u pdd 1 a0eng d 9789279082559 1016-8060 (print) 1725-3187 (online) KC-AI-08-330-EN-C 37765 GR-PeUP ΚΕΤ Αλφαβητική σειρά Geraats, Petra M. ECB credibility and transparency / Petra M. Geraats. Brussels- Belgium : European Comission: Directorate-General for Economic and Financial Affairs, 2008. 34 σ. : διαγ. πιν. ; 30 εκ. European Economy. Economic papers ; Economic Papers. This paper argues that ECB credibility in delivering price stability is being progressively eroded; this problem could be overcome by embracing greater transparency especially about the ECB's objectives, macroeconomic forecasts and decision-making. During the ECB's first decade, average inflation in the euro area has been low, but it has failed to meet the ECB's criterion of below but close to 2% over the medium term. Although this could be attributed to unanticipated shocks, the analysis in this paper points to some structural shortcomings. In particular, there has been an upward trend in medium and long term inflation expectations in the euro area, which have even reached over 2%, and the credibility of the ECB achieving price stability in the medium term has gradually eroded to critically low levels. In addition, there is evidence that medium and long term inflation expectations are negatively affected by the inflation experience of the euro area. However, this paper argues that these problems could be overcome embracing by greater transparency, especially about the ECB's objectives, macroeconomic forecasts and decision-making. European Commission : Directorate-General for Economic and Financial Affairs. Economic Papers June 2008, No 330. European Economy. Economic papers ; 330. INST UNIPILB KET 20090212 EEEP 330 EEEP 330 NOLOAN 23 1 http://ec.europa.eu/economy_finance/publications/publication_summary12716_en.htm.