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banks' independence, the provided evidence reveals a mismatch between the observed policy practice and its theoretical …
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After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise. Price pressures are now increasingly broadening to...
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Two recent proposals for overcoming the euro area crisis make the case for monetary financing of the public sector. Watt proposes that the ECB finances public investment directly, while Pâris and Wyplosz contend that public debt may be effectively restructured by burying parts of it in the...
Persistent link: https://www.econbiz.de/10011311717
the bank has put its independence at risk. The bank’s vow to do “whatever it takes” to save the euro has added a second … mandate could expose the bank to national and European political demands, thereby endangering its prized independence. …
Persistent link: https://www.econbiz.de/10010240658
In 2022, the European Central Bank (ECB) introduced the Transmission ProtectionInstrument (TPI) to counter the risk of financial fragmentation following the normalisation ofmonetary policy. The ECB has specified conditions under which the TPI can be activated.This paper examines these conditions...
Persistent link: https://www.econbiz.de/10014422607