Peter Bofinger, (2020), “Time is ripe for a new ECB strategy”, Social Europe, 6 January ” It’s not so much that what the European Central Bank is doing is wrong as that it is not framing public understanding. The next ECB strategy, writes Peter Bofinger, should do so.” Related Posts Gergo Motyovszki, (2020), “The right macroeconomic policies for a Europe saving too much“, Social Europe, 2 January Daniel Gros, (2019), “The …Read More
The right macroeconomic policies for a Europe saving too much
Gergo Motyovszki, (2020), “The right macroeconomic policies for a Europe saving too much“, Social Europe, 2 January ” A fierce debate is raging about European macroeconomic policy. German media increasingly attack the ultra-loose monetary policies of the European Central Bank (ECB), in defence of prudent savers, while former and current central bankers have criticised further unconventional easing. Beyond monetary hawks pushing for tight money, fiscal orthodoxy is resisting calls for loosening purse strings: the German government is reluctant to …Read More
The ECB after the crisis: Existing synergies among monetary policy, macroprudential policies, and banking supervision
Nuno Cassola, Christoffer Kok, Francesco Paolo Mongelli, (2019), «The ECB after the crisis: Existing synergies among monetary policy, macroprudential policies, and banking supervision », VoxEU, 20 December In 2012, European leaders decided to establish a pan-European supervisory authority at the ECB, and in November 2014 direct banking supervision and an important role in financial stability were added to the monetary policy responsibilities of the central bank. The ECB has seen its …Read More
Annual inflation up to 1.0% in the euro area
Eurostat, (2019), «Annual inflation up to 1.0% in the euro area», 18 December The euro area annual inflation rate was 1.0% in November 2019, up from 0.7% in October. A year earlier, the rate was 1.9%. European Union annual inflation was 1.3% in November 2019, up from 1.1% in October. A year earlier, the rate was 2.0%. These figures are published by Eurostat, the statistical office of the European Union. In …Read More
Industrial production down by 0.5% in euro area
Eurostat, (2019), «Industrial production down by 0.5% in euro area», 12 December In October 2019 compared with September 2019, seasonally adjusted industrial production fell by 0.5% in the euro area (EA19) and by 0.4% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In September 2019, industrial production fell by 0.1% in the euro area and rose by 0.1% in the EU28. Related Posts …Read More
Public support for the euro and trust in the ECB: The first two decades
Felix Roth, Lars Jonung, (2019), «Public support for the euro and trust in the ECB: The first two decades», VoxEU 13 December Support for the euro among citizens (and thus among voters) is a key – perhaps the key – determinant of its long-term survival. Public support is the political glue that holds a monetary union together (Bordo and Jonung 2003). As long as this glue is present, citizens give …Read More
Policy change needed to accelerate investment in structural transformation
Laurence Boone, Debora Revoltella, (2019), «Policy change needed to accelerate investment in structural transformation», Voxeu, 6 December For the past two years, global growth outcomes and prospects have steadily deteriorated, dragged down by persistent policy uncertainty and weak trade. Investment growth has collapsed in tandem, just when it needed to speed up in response to historic challenges: digitalisation, climate change, trade relations. Urgent policy action is needed to enable the …Read More
GDP up by 0.2% and employment up by 0.1% in the euro area
Eurostat/GDP up by 0.2% and employment up by 0.1% in the euro area/5 December 2019 Seasonally adjusted GDP rose by 0.2% in the euro area (EA19) and by 0.3% in the EU28 during the third quarter of 2019, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2019, GDP had grown by 0.2% in both …Read More
Fiscal policy cannot save the ECB
Daniel Gros, Angela Capolongo, (2019), «Fiscal policy cannot save the ECB», VoxEU, 3 December Given persistently low inflation, sluggish growth, and global uncertainties, the ECB needs to provide even more monetary stimulus. However, with interest rates already negative and strong opposition to further asset purchases (Financial Times 2019), it seems to have run out of ammunition. This is why the parting ECB President, Mario Draghi, called for fiscal policy “to …Read More
Euro area annual inflation up to 1.0%
Eurostat, (2019), « 2019 Euro area annual inflation up to 1.0%», 29 November Euro area annual inflation is expected to be 1.0% in November 2019, up from 0.7% in October according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in November (2.0%, compared with 1.5% …Read More