Carmignac’s Frédéric Leroux argues that stronger nominal growth, structural inflation and rising investment needs could justify a rethink of Europe’s monetary policy framework.
- AI investment, defence spending and climate adaptation may support stronger growth while keeping inflation structurally higher.
- Higher nominal GDP growth can help reduce debt-to-GDP ratios when it exceeds governments’ average borrowing costs.
- Leroux argues that the ECB’s strict 2% inflation target may constrain growth more than a dual-mandate framework would.
Explore the full report to examine the case for a more flexible ECB mandate in a changing macroeconomic environment.
Continue reading this article?
Register for free and get access to Investment Officer International:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
Register for free and get access to Investment Officer Luxembourg:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
