Business Cycles, Growth, Economic Structure Currency and Financial Markets ECB Economic Policy Europe Macroeconomics

Statement on the ECB council meeting (April 27, 2017)

It is wise for the ECB to stick to its policy strategy and not let itself be impressed by criticism from Germany. The pressure from Germany for the ECB to end its expansionary policy stance prematurely has increased. The ECB is right to resist the pressure from Germany as the economic and financial risks for the euro area are still significant.

The ECB is only gradually getting closer to meeting its price stability mandate as in particular core inflation is … [continue reading]

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ECB Europe Monetary Policy

Statement on the ECB decision

The ECB decision is wise and balanced. It may disappoint many in Germany. The extension of the PSPP programme was inevitable as the risks to the euro area economy are still huge and the ECB is likely to miss its price stability mandate through 2019.

The ECB decision is wise as it leaves all options open. The ECB is introducing more flexibility through the changes to the PSPP programme. The ECB decision implies a longer period of low interest rates … [continue reading]

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ECB Europe

Statement on today’s meeting of the Council of the ECB, October 20, 2016

The ECB decision bears no major surprises. Draghi did not contradict market expectations of an extension of the QE program to be announced in December. Such an extension has thus become even more likely. I do not expect a reduction in the monthly purchases by the ECB. Such a step would disappoint market expectations and could trigger undesired market reactions. The latest economic news are not encouraging and give little cause for a fundamental change in monetary policy.

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Economic Policy Europe Public Finances and Financial Economics

Judy Asks: Can Debt Relief Save the Euro?

A selection of experts answer a new question from Judy Dempsey on the foreign and security policy challenges shaping Europe’s role in the world.

The question is not whether debt relief is needed, but how and when it will take place.

Almost one year after the Greek debt drama, which almost ended with Greece’s exit from the eurozone, the conflict between the Greek government and its European partners is again heating up. The bad news is that progress on Greek … [continue reading]

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ECB Europe Monetary Policy

Mere criticism of the ECB is no solution

Joint op-ed by: , , , , , and published on Bruegel.org. A shorter version of this op-ed was published in FAZ.

The eurozone remains in a deep, largely macro-economic crisis. A robust global economy and falling oil prices have supported Europe’s economy for some time, but by now it is clear that the eurozone will only be able to pull itself … [continue reading]

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Currency and Financial Markets Europe Macroeconomics

Delusional Gemany

This article was first published on Project Syndicate on 14 November 2013.

In recent days, Germany’s representative on the European Central Bank’s governing council has expressed strong disagreement with the ECB’s decision on November 7 to cut its benchmark interest rate. Now the European Commission has opened an investigation into whether or not Germany’s huge current-account surplus is causing economic damage in the European Union and beyond. This investigation and criticism of Germany’s export-based growth model has incited outrage in … [continue reading]

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Currency and Financial Markets Europe

The ECB must open itself up

Published in Financial Times (10th of June 2013)

On Tuesday, the conflict between the European Central Bank and the Bundesbank will turn into a showdown before the German constitutional court on the legality of eurozone policy decisions. No matter how the court eventually rules, the case is straining a difficult relationship. It is time to defuse this eurozone time bomb. As one of 17 national central banks, the Bundesbank is part of the eurosystem headed by the ECB. The current … [continue reading]

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