Thank you for inviting me to address this conference. This morning, I would like to speak to you about the ECB’s strategy review, the reasons we are conducting it, and our expectations as a result of it.
Since 2003, when we last conducted a strategy review, the euro area and the world economy have undergone profound changes. The consensus that has governed monetary policy worldwide has been challenged on a number of fronts.
Most importantly, the last decade has been defined by a persistent decline in inflation among advanced economies. In the euro area, annual inflation averaged 2.3% from 1999 to the eve of the great financial crisis in August 2008, but only 1.2% from then until the end of 2019.