Challenges for monetary policy in a rapidly changing world : conference proceedings

The 2022 ECB Forum on Central Banking was designed to analyse a series of disruptions that affected the euro area and the world economy during the recovery from the COVID pandemic, including notably Russia's invasion into Ukraine, and a number of parallel structural changes. Participants discussed implications for inflation, monetary policy and financial stability. In this article, two of the organisers summarise some main points from the papers and discussions, including how supply bottlenecks drive inflation, how oil price shocks affect the macroeconomy and how Europe is restructuring its energy supply, how globalisation turns from goods to services, how inflation expectations should be used in the conduct of monetary policy, what house price booms imply for monetary and macroprudential policies, which financial stability challenges have recently emerged and how a Central Bank Digital Currency should be designed and what it would imply.