It is time for the ECB to depart from orthodoxy!

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.