European Central Bank, (2017), “Economic Bulletin”, Issue 4, June At its monetary policy meeting on 8 June 2017, the Governing Council concluded that a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up and support headline inflation in the medium term. The information that has become available since the previous monetary policy meeting in late April confirms a stronger momentum in the euro …Read More

Georgiadis, Georgios, Jančoková, Martina, (2017), “Financial globalisation, monetary policy spillovers and macro-modelling: tales from 1001 shocks”, ECB, June A salient feature of the global economy since the 1990s has been the dramatic rise of financial globalisation. Whether measured by capital flows or indicators reflecting the extent of legal capital account restrictions, economies’ financial markets have been exhibiting an increasing degree of interdependence. As a result, the global economy has become …Read More

Gros, Daniel, (2017), “Implications of the Expanding Use of Cash for Monetary Policy”, Centre for European Policy Studies (CEPS), 20 June Financial innovation seems to have had little impact on the oldest medium of transaction, namely cash. The ratio of currency in circulation to GDP has increased in most countries, independently of the continuing spread of cashless transactions. Currency is part of the monetary base. Its increase thus leads to …Read More

Da Silva, Antonio Dias, Givone,  Audrey, Sondermann, David, (2017), “When do countries implement structural reforms?” , ECB, June The objective of this paper is to investigate which factors ‐ macroeconomic, policy‐related or institutional  ‐ foster the implementation of structural reforms. To this objective, we look at episodes of structural reforms over three decades across 40 OECD and EU countries and link them to such factors. Our results suggest that structural reforms implementation is more …Read More

Smith, Jonathan Acosta, Grill, Michael, Lang, Jan Hannes, (2017), “The leverage ratio, risk-taking and bank stability” , ECB, June This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk-taking associated with the introduction of the Basel III Leverage Ratio. This is addressed in both a theoreti-cal and empirical setting. Using a theoretical micro model, we show that a leverage ratio requirement can incentivise banks that are bound …Read More