The huge literature on the causes of the persistent weakness in inflation in the euro area has not identified one single key factor. Moreover, inflation has also been lower than expected in many advanced countries. Low inflation expectations seem to have played an important role in reducing wage...

The huge literature on the causes of the persistent weakness in inflation in the euro area has not identified one single key factor. Moreover, inflation has also been lower than expected in many advanced countries. Low inflation expectations seem to have played an important role in reducing wage...

The imbalances within the Eurosystem's Target 2 payment system are an indication that financial markets are not fully integrated. However, the increase in these imbalances in the wake of the large asset purchases (often called QE, for quantitative easing) that started in early 2015, should not...

The imbalances within the Eurosystem's Target 2 payment system are an indication that financial markets are not fully integrated. However, the increase in these imbalances in the wake of the large asset purchases (often called QE, for quantitative easing) that started in early 2015, should not...

The statutes of the European Central Bank (ECB) stipulate that it should have recourse to national central banks (NCBs) to carry out monetary policy operations. Such a structure would not be a problem if these operations were all identical across member states and if the resulting profits and...

The statutes of the European Central Bank (ECB) stipulate that it should have recourse to national central banks (NCBs) to carry out monetary policy operations. Such a structure would not be a problem if these operations were all identical across member states and if the resulting profits and...

In the short- to medium-run, non-standard monetary policy helps to stimulate the economy and stabilize financial markets. However, it is also widely acknowledged that side effects tend to materialize in the medium- to long-run. Thus, the time dimension is a crucial factor in assessing the...

In the short- to medium-run, non-standard monetary policy helps to stimulate the economy and stabilize financial markets. However, it is also widely acknowledged that side effects tend to materialize in the medium- to long-run. Thus, the time dimension is a crucial factor in assessing the...

Critics of ECB loose monetary policy warn against the risk that this policy squeezes banks' profits, which could ultimately lead to higher lending rates and lower credit supply. This discussion has arisen in the euro area in particular, as banks' profitability is low on average and some banks...

Critics of ECB loose monetary policy warn against the risk that this policy squeezes banks' profits, which could ultimately lead to higher lending rates and lower credit supply. This discussion has arisen in the euro area in particular, as banks' profitability is low on average and some banks...