Macron Says Inflation Cannot Be Sole Target of Monetary Policy

(Bloomberg) -- French President Emmanuel Macron said inflation can no longer be the only target for European monetary policy and called for growth and decarbonization to be added as criteria.

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In a speech Paris’s Sorbonne University on Thursday, the 46-year-old president said inflation as a single goal was out of date in today’s world.

“We need to raise the theoretical and political debate on how to integrate at least a growth goal and possibly one on decarbonization,” Macron said. “It’s absolutely essential.”

The European Central Bank has had price stability as it’s primary objective guiding monetary policy since its inception.

Earlier this week, Bank of France Governor Francois Villeroy de Galhau said it was an “illusion” to think that central banks could shoulder the burden of climate transition.

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