ECB Can't Simply 'Look Through' Supply Shocks, Elderson Says.

The European Central Bank is reevaluating its approach to supply shocks, with Executive Board Member Frank Elderson emphasizing the need to address these shocks promptly to prevent long-lasting impacts on inflation. Recent events have shown that supply shocks can lead to persistent deviations from inflation targets, prompting a reassessment of monetary policy strategies. The ECB is conducting a review of its monetary policy strategy, aiming to better handle potential supply shocks in the future to maintain price stability. [Extracted from the article]