ECB Monetary Policy Boosts Prices During Economic Booms, Study Finds.
The study looked at how the European Central Bank's monetary policy affects the economy differently during good and bad times. By analyzing financial market reactions after ECB meetings, the researchers found that prices react more strongly to monetary policy during economic booms, while the impact on economic activity is similar in both recessions and expansions. They also discovered that wages respond more to monetary policy when the economy is doing well and there is no slack. This suggests that wages are less flexible during good times.