ECB’s Villeroy: Monetary Policy Effects Starting to Become Clear

14 November 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Tuesday said that the results of monetary policy were starting to be visible.

At roundtable discussion during an event in Lyon, France, Villeroy, who heads the Banque de France, said that like other public policies, monetary policy ‘also takes one or years to produce results, and we are starting to see them.’

‘On inflation I believe that we are on a good path to success, but I am not here to advertise a monetary policy that works. I simply say that we will bring inflation back towards 2% by 2025 at the latest’, he said.

Results against inflation were the proper answer to the question of the independence of central banks, Villeroy said. ‘If we are not effective, I understand perfectly that we are calling the independence into question.’

For economic policies to be successful, ‘more policy and less polemics’ and ‘more economics and less economism’ were necessary, he said.