In principle, it is clear from the context of the text which period is meant in each case, because unfortunately there is no uniform definition. – In ECB statistics, this refers to amounts with an agreed maturity or notice period of more than one year and up to five years. – In monetary policy (including that of the ECB), “medium term” is not to be expressed in terms of years or months because – time lags are, as experience shows, not fixed but fluctuating, – transmission mechanisms (namely the impact of monetary policy measures on real variables) depend crucially on the overall economic environment both in their speed of transmission and in their intensity of transmission, and – shocks of all kinds (especially natural and political) are unpredictable. – See Braking distance, monetary, Expectations, Short-term, Long-term, London short, Long-lag theory, Shock, external, Shocks, structural.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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