Does the ECB consider the persistence of inflation differentials?

We assess the relevance of the monetary policy of the ECB in the context of persistent inflation differentials among euro area members and ask whether it takes into account this structural difference. Our results reveal that the ECB has adopted an appropriate monetary policy rule to prevent low inflation countries from a deflationary spiral, but that it did not consider the negative effects induced as a consequence on the countries with a higher inflation rate. This raises the question of the ECB monetary policy responsibility in the triggering and the worsening of the euro debt crisis.