Posted on Jul 10, 2021 at 10:00 AMUpdated on Jul 10, 2021, 10:10 AM
It is a republican tradition which dates back to 1945. Every year, the governor of the Banque de France gives to the President of the Republic, as well as to the presidents of the two chambers of Parliament, a letter shedding light on the major challenges of the moment. This year the exercise took place in a particular context, the day after the presentation of the strategic review of the European Central Bank. The opportunity for François Villeroy de Galhau to review the main lines of this overhaul.
He welcomed the “serious update” brought to its strategy by the central bank. And in particular the choice of a clear and unambiguous inflation target of 2%, “which in no way constitutes a ceiling”. It may therefore be temporarily exceeded to achieve the objective. “In recent years, we have realized that too low inflation, a sign of an anemic economy, was at least as bad as too high inflation linked to an overheating economy,” he said. .