Monetary policy

Do financial markets consider European common debt a safe asset?

The interest rate on European Union bonds is now almost as high as that of supposedly riskier Spanish bonds; this risks defeating their purpose.

How European Union energy policies could mitigate the coming recession

The European Union faces recession, but the way in which policymakers manage the energy crisis will determine its depth and duration.

Learning from the European Central Bank's policy mistakes

While mistakes unduly constrained rate hikes, gradual tightening is the right approach along with a new instrument to address energy bottlenecks.

Euro area monetary asset demand and Divisia aggregates

Tackling inflation: learning from the European Central Bank's six lapses

While mistakes unduly constrained rate hikes, gradual tightening is the right approach along with a new instrument to address energy bottlenecks.

How effective has the pandemic emergency purchase programme been in ensuring debt sustainability?

The ECB’s pandemic emergency purchase programme has improved substantially the debt dynamics of euro-area countries, with durable effects.

An analysis of central bank decision-making

Bank of England MPC celebrates 25 years and we use this occasion to compare its decision-making process to that of the ECB

Central banks have been too slow in responding to higher inflation

Tackling inflation requires monetary and fiscal policy tightening. It should be done quickly to avoid building up inflationary inertia & stagflation

The implications for public debt of high inflation and monetary tightening

Expected increases in interest rates and reductions in real GDP growth rates will result in relatively small increases in public debt-to-GDP ratios.

Three headaches for the European Central Bank

Once again, the limits of EMU architecture are visible and will require a rethink.

The week inflation became entrenched

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

The weakness of average inflation targeting

Introducing average over time without defining what this means is counterproductive and current levels of inflation in the US will sooner or later exp