TARGET balances, Bretton Woods, and the Great Depression

Michael Bordo 21 March 2014

a

A

During the Eurozone crisis, an analogy was made between the events in Europe between 2007 and 2012 and the collapse of the Bretton Woods System between 1968 and 1971. There has been a build-up of TARGET liabilities since 2007 by some central banks (notably Greece, Ireland, Portugal, and Spain, or the ‘GIPS’), and of TARGET assets by Germany and others.

a

A

Topics:  Economic history International finance

Tags:  ECB, eurozone, euro, global imbalances, Central Banks, financial crisis, Great Depression, Eurosystem, Eurozone crisis, Bretton Woods, TARGET

German Court decision: Legal authority and deep power implications

Katharina Pistor 26 February 2014

a

A

Can the European Central Bank legally act as lender of last resort to ensure the survival of the euro?

This question is of fundamental importance for the sustainability of the monetary union. Recently, the German Constitutional Court ruled that it cannot. In the court’s view the ECB has the power to conduct monetary policy, but not to support member states in financial distress even if necessary to ensure the survival of the common currency.

a

A

Topics:  EU institutions

Tags:  ECB, Eurozone reform

The unpleasant legacy of the crisis: public debt and low trend growth in the Eurozone

Nicholas Crafts interviewed by Viv Davies,

Date Published

Tue, 01/21/2014

a

A

See Also

Crafts, N (2013b), “Saving the Euro: a Pyrrhic Victory?”, CAGE-Chatham House Policy Briefing Paper No. 11.

Buiter, W and E Rahbari (2013), “Why Do Governments Default and Why Don’t They Default More Often?”, CEPR Discussion Paper 9492.

a

A

Topics

Economic history Macroeconomic policy
Tags
ECB, eurozone, fiscal consolidation, public debt, gold standard, financial repression, debt monetisation

Date Weighting

-1

Related Article(s)

The Eurozone: If only it were the 1930s Escaping liquidity traps: Lessons from the UK’s 1930s escape To end the Eurozone crisis, bury the debt forever A consistent trinity for the Eurozone Why fiscal sustainability matters
MP3 File Details

Listen

Unfortunately the file could not be found.

Open in a pop-up window Open in a pop-up window

Download

Download MP3 File (10.9MB)

MP3 File Size

10.9MB

MP3 RSS File Size

11429356

MP3 Length (Minutes)

11

MP3 Length (Seconds)

54

When

January 2014

Where

London

Single supervision and resolution rules: Is ECB independence at risk?

Donato Masciandaro, Francesco Passarelli 21 December 2013

a

A

A successful transition to a European Banking Union requires robust and credible ‘Chinese walls’ between the ECB’s role as monetary authority and any responsibility in the Single Supervisory Mechanism or in the resolution rules. Otherwise, the ECB’s independence would be at risk, given that monetary policy would likely have larger distributional effects.

a

A

Topics:  EU institutions Financial markets

Tags:  ECB, Central Banks, central bank independence, global financial crisis, banking regulation, bank resolution, banking union

The Eurozone: If only it were the 1930s

Nicholas Crafts 13 December 2013

a

A

The 1930s deservedly have a bad name. It is hard to imagine that a decade that included the Great Depression and a major de-globalisation of the world economy, and culminated in WWII could be other than notorious. And yet, compared with struggling Eurozone economies today, the economic situation in Europe in the later 1930s was in many ways more promising. This is particularly true of the aftermath of public debt and the difficulty of dealing with it.

a

A

Topics:  Economic history Macroeconomic policy

Tags:  ECB, eurozone, fiscal consolidation, public debt, gold standard, financial repression, debt monetisation

Currency wars and the euro

Jens Nordvig 25 November 2013

a

A

A new battle for the ECB to fight

Last year, the ECB entered an existential battle for the euro. By promising to do ‘whatever it takes’ to safeguard the euro, the ECB managed to calm sovereign debt markets and engineer a much-needed easing of overall credit conditions in the Eurozone.

a

A

Topics:  EU institutions Exchange rates Monetary policy

Tags:  ECB, eurozone, euro, unemployment, Bundesbank, Currency wars

Banking union for Europe – where do we stand?

Thorsten Beck 23 October 2013

a

A

In a few days, pending some last-minute diplomatic conflict between the UK and the European Commission, the ECB will begin an asset-quality review of European banks. This is supposed to be the entry point to the supervisory role of the ECB in the context of the Single Supervisory Mechanism (SSM), the first of three pillars of the planned banking union. Little political progress has been made on the other two pillars, bank resolution and deposit insurance, in spite of proposals by the EU Commission.

a

A

Topics:  EU institutions Global crisis

Tags:  ECB, eurozone, monetary union

Should the ECB publish its minutes?

Hans Gersbach, Volker Hahn 07 October 2013

a

A

Mario Draghi has voiced his support for the quick release of minutes and has confirmed that the ECB is to take a decision on this issue in the near future (Reuters 2013). Joerg Asmussen, a member of the ECB's Executive Board, recently proposed that the ECB should publish the minutes of the ECB council meetings immediately and demanded that the members’ individual positions be revealed (Bloomberg 2013). There is no doubt that the current tendency towards more transparency in monetary policy1 enhances central banks' accountability towards the public.

a

A

Topics:  EU institutions Institutions and economics

Tags:  ECB

Redesigning the ECB with regional rather than national central banks

Michael Burda 15 July 2013

a

A

The monetary union was always a grand gamble. It established the ECB for an immense region that itself was not a state -- a trans-European institution with governmental duties that does not represent any government in particular.

a

A

Topics:  EU institutions Macroeconomic policy

Tags:  ECB, monetary union, Central Banks

Misplaced concerns about central-bank independence

Marco Annunziata 12 February 2013

a

A

Concerns are rising that central-bank independence is at risk, already curtailed by governments eager to control all other levers of growth. The Japanese government’s none-too-subtle strong-arming of the Bank of Japan is one of the most blatant examples (e.g. King 2013).

But the current debate on the risks to central-bank independence misses the point.

a

A

Topics:  Institutions and economics Monetary policy

Tags:  ECB, Fed, Central Banks, Federal Reserve, fiscal policy, independence

Pages

Events