ECB Action Is at Risk of Being Less Effective, But More Frequent, Dolenc Says
The European Central Bank's (ECB) policy actions are at risk of becoming less effective but more frequent, according to Governing Council member Primoz Dolenc. Structural trends, such as the rise of the digital economy and climate change, are threatening to confound the ECB's traditional policy tools. Dolenc warns that the bank may need to intervene more often to address these challenges, but the impact of its actions may be diminished. This suggests that the ECB may need to consider new and innovative approaches to monetary policy to effectively address the evolving economic landscape. Dolenc's comments highlight the growing complexity and uncertainty facing central banks as they navigate the shifting economic dynamics in the eurozone.
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