tail that wags the economy : beliefs and persistent stagnation ”, nber working paper no. 21719. the authors argue that if people base their beliefs on past realisations, then extreme, albeit transitory, events can generate persistent changes in our cognitive framework. 9 see e. g. gerba, e. and d. zochowski ( 2017 ), “ knightian uncertainty and credit cycles ”, ecb working paper no 2068. 10 see e. g. benigno, g. and l. fornaro ( 2017 ), “ stagnation traps ”, ecb working paper no 2038. 11 see rossi, b., t. sekhposyany and m. souprez ( 2017 ), “ understanding the sources of macroeconomic 6 / 7 bis central bankers'speeches uncertainty ”, barcelona gse working paper no 920. 12 see e. g. ecb ( 2017 ), financial stability review, may and november. 13 see e. g. draghi, m. ( 2017 ), “ accompanying the economic recovery ”, speech at the ecb forum on central banking, sintra, 27 june. 7 / 7 bis central bankers'speeches

mario draghi : ecb press conference – introductory statement introductory statement by mr mario draghi, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 16 july 2015. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. we will now report on the outcome of today ’ s meeting of the governing council, which was also attended by the commission vice - president, mr dombrovskis. based on our regular economic and monetary analyses, and in line with our forward guidance, we decided to keep the key ecb interest rates unchanged. regarding non - standard monetary policy measures, the asset purchase programmes continue to proceed smoothly. as explained on previous occasions, our monthly asset purchases of €60 billion are intended to run until the end of september 2016 and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2 % over the medium term. when carrying out its assessment, the governing council will follow its monetary policy strategy and concentrate on trends in inflation and the medium - term outlook for price stability. all in all, the information that has become available since the governing council meeting in early june has been broadly in line with our expectations. recent developments in financial markets, which partly reflect greater uncertainty, have not changed the governing council ’ s assessment of a broadening of the euro area ’ s economic recovery and a gradual increase in inflation rates over the coming years. the ecb ’ s monetary policy stance remains accommodative and market - based inflation expectations have, on balance, stabilised or recovered further since our meeting in early june. the latest information also remains consistent with a continued pass - through of our monetary policy measures to the cost and availability of credit for firms and households. our measures thereby continue to contribute to economic growth, a reduction in economic slack, and money and credit expansion. the full implementation of all our monetary policy measures will lead to a sustained return of inflation rates towards levels below, but close to, 2 % in the medium term, and will underpin the firm anchoring of medium to long - term inflation expectations. looking ahead, we will continue to closely monitor the situation in financial markets, as well as the potential implications for the monetary policy stance and for the outlook for price stability. if any factors were to lead