We should not be afraid of monetary and fiscal policies working together, says Executive Board member Fabio Panetta. It has the potential to bring us back sustainably to our inflation aim and to an economy operating at full capacity ecb.europa.eu/press/key/date… 1/4 
Panetta: If we are seen as determined to achieve 2% inflation without undue delay and enable monetary-fiscal interactions, rising inflation expectations will make our task easier. Otherwise, we will end up spending more, not less, and we may not exit the liquidity trap 2/4
Panetta: We should recognise that what was seen as unconventional in the past is now conventional. In particular, we should strive to retain the unconventional flexibility that has served us well during the pandemic 3/4
Panetta: Next Generation EU, flexible monetary policy, monetary-fiscal interactions – all of these innovations are helping our monetary union to function better. We now have an opportunity to build on them and permanently lift euro area growth to higher levels 4/4
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