Past Event

An alpine divide? Comparing economic cultures in Germany and Italy

A discussion of Italian and German macro-economic cultures and performances.

Date: April 13, 2021, 1:00 pm Topic: Macroeconomic policy

video & audio recordings

Bruegel · An alpine divide? Comparing economic cultures in Germany and Italy

At this event we presented “The Value of Money. Controversial Economic Cultures in Europe: Italy and Germany” (published by Villa Vigoni) and had a discussion on Italian and German macro-economic cultures and performances.

When the Bretton Woods system collapsed in the early 1970s, Italy and Germany embarked on radically different monetary policies. The result was an increase in the value of the D-Mark from 170 Italian lira under Bretton Woods to 990 lira at the start of European Monetary Union. What was behind this development and did it reflect a fundamental alpine divide between Germany and Italy in the conduct of macro-economic policy? Has this divide persisted in EMU and, if so, does it threaten EMU, or is it receding?

What does the interaction between Italian and German economic cultures tell us about dynamics within the ECB? And what do these dynamics tell us about actions during, say, the financial crisis?

Schedule

Apr 13, 2021

13:00-13:30

Kick-off remarks

Chair: André Sapir, Senior Fellow

Patricia Mosser, Director, MPA Program in Economic Policy Management, Columbia University

Hiroshi Nakaso, Chairman, Daiwa Institute of Research

Marianne Nessén, Senior Advisor to the Executive Board, Sveriges Riksbank

Jean-Claude Trichet, Honorary Chairman of Bruegel

13:30-14:15

Conversation and Q&A

Chair: André Sapir, Senior Fellow

Thomas Mayer, Founding Director, Flossbach von Storch Research Institute

Patricia Mosser, Director, MPA Program in Economic Policy Management, Columbia University

Hiroshi Nakaso, Chairman, Daiwa Institute of Research

Marianne Nessén, Senior Advisor to the Executive Board, Sveriges Riksbank

Francesco Papadia, Senior Fellow

Jean-Claude Trichet, Honorary Chairman of Bruegel

Speakers

Thomas Mayer

Founding Director, Flossbach von Storch Research Institute

Patricia Mosser

Director, MPA Program in Economic Policy Management, Columbia University

Marianne Nessén

Senior Advisor to the Executive Board, Sveriges Riksbank

Hiroshi Nakaso

Chairman, Daiwa Institute of Research

Francesco Papadia

Senior Fellow

André Sapir

Senior Fellow

Jean-Claude Trichet

Honorary Chairman of Bruegel

Location & Contact

Katja Knezevic

[email protected]

Read article More by this author
 

Blog Post

European governance

Discretion lets Croatia in but leaves Bulgaria out of the euro area in 2023

Crucial decisions about whether a country can join the euro area depend on questionable discretionary decisions.

By: Zsolt Darvas Topic: European governance, Macroeconomic policy Date: June 22, 2022
Read article More on this topic
 

Blog Post

A new European tool to deal with unjustified rising spreads

The European Central Bank needs a new tool to prevent the current rise in spreads, triggered by monetary policy tightening, from escalating into a new euro-area crisis.

By: Grégory Claeys and Maria Demertzis Topic: Banking and capital markets Date: June 20, 2022
Read article Download PDF More on this topic
 

Working Paper

Measuring macroeconomic uncertainty during the euro’s lifetime’

The basic idea is that observable forecasts of macroeconomic variables are transformations of the sets of macroeconomic information, which are so complex as to be unobservable, prevailing when the forecasts are made.

By: Monika Grzegorczyk and Francesco Papadia Topic: Macroeconomic policy Date: June 20, 2022
Read article Download PDF
 

External Publication

European governanceEuropean Parliament

Fragmentation risk in the euro area: no easy way out for the European Central Bank

The ECB should design a specific tool that will accompany interest rate hikes to neutralise the risk of fragmentation directly for countries facing it, staying within the bounds of the EU treaties and ensuring political legitimacy. We also advocate structural changes to the ECB’s collateral framework to avoid unnecessary uncertainty surrounding the safe asset status of European sovereign bonds.

By: Maria Demertzis, Grégory Claeys and Lionel Guetta-Jeanrenaud Topic: European governance, European Parliament, Testimonies Date: June 8, 2022
Read article More by this author
 

Opinion

European governance

Three headaches for the European Central Bank

Even though inflation in the euro area is lower than in the US, three issues make it a lot more difficult for the ECB to control inflation and preserve financial stability. Once again, the limits of EMU architecture are visible and will require a rethink.

By: Maria Demertzis Topic: European governance, Macroeconomic policy Date: May 31, 2022
Read article More on this topic More by this author
 

Podcast

Podcast

Taming inflation?

What are the implications of prolonged inflation?

By: The Sound of Economics Topic: Macroeconomic policy Date: May 25, 2022
Read about event More on this topic
 

Past Event

Past Event

What is in store for Euro area economies?

ECB Executive Board Member Philip Lane discusses the outlook for Euro area economies.

Speakers: Maria Demertzis and Philip Lane Topic: European governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 5, 2022
Read about event More on this topic
 

Past Event

Past Event

Tackling future risks to banks

How to address vulnerabilities in banks in the coming years?

Speakers: Maria Demertzis and Elizabeth McCaul Topic: Banking and capital markets Date: March 29, 2022
Read article More on this topic More by this author
 

Opinion

China can see the limits of bailing out Russia's economy

Beijing will support Moscow as long as it does not fall foul of Western sanctions.

By: Alicia García-Herrero Topic: Global economy and trade Date: March 16, 2022
Read article
 

Opinion

European governance

How to reconcile increased green public investment needs with fiscal consolidation

The EU’s ambitious emissions reduction targets will require a major increase in green investments. This column considers options for increasing public green investment when major consolidations are needed after the fiscal support provided during the pandemic. The authors make the case for a green golden rule allowing green investment to be funded by deficits that would not count in the fiscal rules. Concerns about ‘greenwashing’ could be addressed through a narrow definition of green investments and strong institutional scrutiny, while countries with debt sustainability concerns could initially rely only on NGEU for their green investment.

By: Zsolt Darvas and Guntram B. Wolff Topic: European governance, Green economy, Macroeconomic policy Date: March 8, 2022
Read article More on this topic More by this author
 

Opinion

The week inflation became entrenched

The events that have unfolded since 24 February have solved one dispute: inflation is no longer temporary.

By: Maria Demertzis Topic: Macroeconomic policy Date: March 8, 2022
Read article Download PDF More on this topic More by this author
 

External Publication

Book notes: Monetary policy in times of crisis

Review of 'Monetary policy in times of crisis: a tale of two decades of the European Central Bank' published in the Central Banking.

By: Francesco Papadia Topic: Macroeconomic policy Date: February 17, 2022
Load more posts