The European Central Bank as a lender of last resort

Paul De Grauwe, 18 August 2011

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In October 2008 the ECB discovered that there is more to central banking than price stability. This discovery occurred when it was forced to massively increase liquidity to save the banking system. The ECB did not hesitate to serve as lender of last resort to the banking system, despite fears of moral hazard, inflation, and the fiscal implications of its lending.

Topics: EU policies
Tags: ECB, Eurozone crisis, lender of last resort

August 2011: The euro crisis reaches the core

Daniel Gros, 11 August 2011

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Canaries were kept in coal mines because they die faster than humans when exposed to dangerous gases. When the birds stopped singing, wise miners knew that it was time to gear up the emergency procedures.

Topics: Global crisis
Tags: ECB, EFSF, Eurozone Debt Crisis

They still don’t get it

Charles Wyplosz, 25 October 2011

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Editor's note: This column updates the column originally posted on 8 August 2011.

 

Topics: EU institutions
Tags: ECB, Eurozone crisis, sovereign default

A balance sheet view on TARGET – and why restrictions on TARGET would have hit Germany first

Clemens Jobst, 19 July 2011

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By now most readers of European financial newspapers and blogs will have come across Hans-Werner Sinn’s repeated assertions (see Sinn 2011a and 2011b on this site and his latest

Topics: EU policies, Europe's nations and regions, International finance
Tags: Bundesbank, Central Banks, ECB, Eurozone crisis, Germany, TARGET

ECB Reaction Functions and the Crisis of 2008

Stefan Gerlach, John Lewis, 4 July 2011

Vox users can download CEPR Discussion Paper 8472 for free here.

Journalists are entitled to free DP downloads on request; please contact pressoffice@cepr.org. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

URL: www.cepr.org/DP8472
Topics: EU institutions, Monetary policy
Tags: ECB, reaction functions, smooth transition and Zero Lower Bound

Should the ECB use core inflation as a signal for medium-term inflation?

Michele Lenza, Lucrezia Reichlin, 24 June 2011

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In the last few weeks the press and several blogs have been engaged in a debate on the classic question of whether central banks should rely on headline inflation or core inflation (defined as headline inflation excluding energy and food) to obtain a signal for medium-term inflationary pressures.

Topics: EU policies, Monetary policy
Tags: core inflation, ECB, headline inflation

The ECB’s three mistakes in the Greek crisis and how to get sovereign debt right in the future

Jeffrey Frankel, 16 May 2011

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By now just about everybody agrees that the European bailout of Greece has failed (see for example Darvas et al. 2011). The debt will have to be restructured.

Topics: EU policies, Europe's nations and regions
Tags: ECB, Eurozone crisis, Fiscal crisis, Greece

The troika should target the trade and the income balance deficits

Ricardo Cabral, 15 May 2011

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Greece, then Ireland, and more recently Portugal have applied for EU and IMF financial aid. A troika of European Commission, ECB, and IMF officials have negotiated accords for ambitious adjustment programmes with either two or three main components, as mandated by the Eurogroup and the Ecofin Ministers (2010a; 2010b; 2011):

Topics: EU policies, Europe's nations and regions
Tags: ECB, Eurozone crisis, financial aid, IMF

Vox’s annual break and some holiday reading tips

Richard Baldwin, 25 December 2010

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After months of preparatory work, Vox was launched in June 2007. The first weeks were going well – and then the subprime crisis struck.

Topics: Frontiers of economic research
Tags: ECB, Eurozone crisis, global crisis, subprime crisis

The European debt crisis: Worrisome delusions

Charles Wyplosz, 19 December 2010

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Lorenzo Bini-Smaghi – Member of the ECB's Executive Board – has produced a brilliant defence of the no-default strategy currently pursued by the Eurozone authorities (Financial Times 2010).

His arguments are straightforward.

Topics: EU institutions
Tags: Debt crisis, ECB, eurozone

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