several of the world's most important central banks have it written into their constitutions that they need to control inflation or target price stability. I think a good lawyer could make a case that a decision to target stability, but stability at a higher level would be consistent with the letter if not the spirit of these laws.
In the real world, inflation has momentum so it is not possible to increase the price level without accepting inflation for a while or inducing a recession. However, the Jesuit doctrine of dual effect might allow the ECB to act in a way which causes inflation provided that they sincerely aim only for a one off increase in the price level.
Casuistry in the cause of debt inflation might be just what the world economy needs.
I'd say that Mr Davies is the (typing) finger of my God, Who is mainly characterized by His or Her sick and twisted sense of Humor.
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