ECB Ready to Adjust All Instruments: Chief Economist Lane

The video discusses the dynamics of inflation, highlighting the projected drop in inflation and the choices available to manage it. It explores different pathways, such as moving gradually or boosting inflation to return to expected trajectories. The video emphasizes the importance of restoring inflation momentum and outlines a two-stage policy approach to achieve medium-term inflation goals. The Governing Council's readiness to adjust instruments as needed is also highlighted.

Describe the two-stage approach to inflation management outlined in the text.

What is the ultimate policy task mentioned in the text regarding inflation?