“Q: Is the ECB reflecting on the fact that, with high debt and countries coming out weak from recession, a mid-term inflation target is not enough to get out of the crisis; and that there are some economists who suggest that you should also link it to unemployment, as the Federal Reserve System does?
What is the object of economic policy in general, and of monetary policy in particular? Wouldn’t you say prosperity, or wealth-creation, or an employed workforce, or an economy operating at full potential? Economic policies in modern capitalist countries are supposed to create the conditions for sustainable long-term growth, as opposed to civil war or revolution.
If Draghi had written the ECB charter, it would have included full employment. But he didn’t, so like Eastwood, he just hangs ‘em high.