European central bank

The ECB’s bond-purchase dilemma

German opposition to government-bond purchases by the European Central Bank is solidifying ahead of the programme’s likely announcement on January 22.

Backward guidance, Chinese style

Since early 2014, the People’s Bank of China (PBC), the Chinese central bank, has deployed multiple policy tools to loosen its monetary policy st

30% of the Euro Area HICP basket is now in outright deflation

A look at the composition of the HICP basket for the euro area shows that the percentage of items that are now in outright deflation has risen to 30%

How I learned to stop worrying about TARGET2 and love the ECB

There always comes a time we have to face our past. For economists, it often happens when updating data long left sitting in a remote corner of o

The German Court does Europe a favour

The German Constitutional Court has been widely criticized for questioning the legality of the European Central Bank’s OMT program. To supporters

Fact of the week: Lithuania changes the ECB’s voting system

Lithuania will become the 19th member of the Euro area on the 1st of January, following Wednesday’s Council endorsement. The most important part of th

The (not so) Unconventional Monetary Policy of the European Central Bank since 2008

This paper was prepared for the European Parliament's Montary Dialogue with the President of the European Central Bank Mario Draghi. Today, the ECB i

ECB shows activism but falls short of true QE

Overall, we welcome that the ECB has finally acted with a broad package. We also think that unanimity on the package was a very positive development a

Addressing weak inflation: The European Central Bank's shopping list

Euro-area inflation has been below 1 percent since October 2013, and medium-term inflation expectations are well below 2 percent. Forecasts of the ret

European Central Bank accountability: how the monetary dialogue could be improved

This Policy Brief was prepared for the European Parliament's Monetary Dialogue with the President of the European Central Bank Mario Draghi. The autho

Ending uncertainty: recapitalisation under European Central Bank supervision

This Policy contribution was prepared for the ECON committee of the European Parliament. Estimates of the recapitalisation needs of the euro-area bank

The ECB's rate cut is a surprising, but good move

The European Central Bank in the age of banking union

This Policy Contribution was prepared for the European Parliament's 'Monetary Dialogue with the President of the European Central Bank Mario Draghi. D

Balancing the new and old roles of the ECB

Reshaping Europe’s financial system

With the upcoming Asset Quality Review (AQR) by the European Central Bank, Europe has a chance to fundamentally reshape its financial system to make i

A realistic bridge towards European banking union

New obstacles to the European banking union have emerged over the last year, but a successful transition remains both necessary and possible. The key