By Francesco Canepa and Balazs Koranyi

FRANKFURT (Reuters) – There is reluctance among European Central Bank policymakers to follow the U.S. Federal Reserve’s move to target an average inflation rate, fearing this could tie their hands, sources involved in a revamp of ECB policy told Reuters.

The four central bank sources, including members of both the hawkish and dovish wings of the ECB’s policymaking governing council, also expressed doubts about whether orthodox inflation theory still applied in economies where prices have long stagnated despite interest rates close to or below zero.

After missing its goal of keeping inflation “below but close to 2%” for a decade, the ECB is reviewing its strategy in the wake of a similar review by the Fed and just as a pandemic-induced recession is pushing euro zone inflation into negative territory.

The euro zone’s central bank has been expected to follow the Fed, which said in August it would aim for 2% average inflation over an unspecified period, so that periods when prices grow too slowly need to be compensated by times of faster increases – and vice versa.

But the policymakers who spoke to Reuters feared that going down this route risked encouraging financial markets to jump to the wrong conclusions about future policy decisions based simply on where the average happened to be at a given point in time.

Instead, they wanted to retain the flexibility to judge each situation on its own merits, for instance by playing down the significance of temporary changes in inflation due to swings in the price of oil.

“We want flexibility so an average target would not really give us a benefit,” one of the sources said.

An ECB spokesman declined to comment.

With euro zone inflation averaging 1.3% over the past decade and currently negative, they

BUENOS AIRES (Reuters) – Argentina tempted wary investors with a dollar-linked bond on Tuesday, issuing around $1.8 billion of the instrument it hopes will help bolster the peso amid a domestic currency crisis, stringent capital controls and tumbling foreign reserves.

FILE PHOTO: Argentine one hundred peso bills are displayed in this picture illustration taken September 3, 2019. REUTERS/Agustin Marcarian/Illustration

The bond is part of a series of measures by the government and the central bank to revive confidence in the peso and encourage local savings. Argentina restructured over $100 billion in foreign-currency debt in recent months.

The restructurings, including $65 billion in foreign-law debt, helped pull the grains-producing nation out of default, but its access to global markets is very restricted. A mission from the International Monetary Fund arrived in the country on Tuesday to start talks for a new deal.

“The government has to show a change of direction quickly,” said Federico Furiase, director of consultancy Eco Go, adding Argentina had “very little gasoline in terms of reserves.”

“The government is trying to buy some time but these are all patches that are unfortunately arriving late.”

Argentina has temporarily cut export taxes on industrial, mining and agricultural products to boost sales and international reserves.

The IMF team started meetings in Buenos Aires as the government seeks a new program to replace a failed $57 billion facility struck in 2018. An IMF official described the visit as being in “listening mode.”

“We have been very clear in this crisis that it is important to provide support to firms and more importantly, to workers,” IMF Managing Director Kristalina Georgieva told CNN Spanish in comments later shared by the government.

“So we are not coming with the idea of, ‘oh, well, let’s see how we can further