The next strategic target: De Gaulle’s EU legacy

Jacob Funk Kirkegaard 30 November 2011

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When Mario Draghi delivered his first prepared public remarks as ECB President on 8 November 2011, he provided several clues about the coming eight years.

  • No surprises on monetary policy, where he announced "continuity, consistency and credibility" as the touchstone, with these principles framed with reference to price stability.

Then came the important part. His choice of words and topic demonstrated why it is wrong to see the ECB as a "normal central bank", why the decades-old guidebook for independent central banks can be discarded.

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Topics:  EU institutions

Tags:  ECB, EZ crisis

Why the ECB needs to care about financial stability

Guido Tabellini 29 November 2011

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As many had expected, the decisions made at the last European summit a few weeks ago were totally inadequate to halt the crisis. What can now be done to stop the spread of distrust?

The official response of German politicians is that leaders must reorder public finances and reform the economy. There is no doubt that this should be done, as it is unthinkable that the countries of southern Europe can get out of the crisis if they cannot recover the capacity for growth and restore public finances. But will this be enough? It is now increasingly clear that the answer is no.

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Topics:  Europe's nations and regions

Tags:  Germany, ECB, Eurozone crisis

Why the ECB refuses to be a Lender of Last Resort

Paul De Grauwe 28 November 2011

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A number of analysts are calling for the ECB to act as the lender of last resort in the Eurozone government bond market (see for example Wyplosz 2011 on this site). Up to now it has resisted. But why should the ECB refuse to take up the role of last-resort buyer?

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Topics:  Europe's nations and regions Global crisis

Tags:  ECB, Eurozone crisis

Greece – where next?

Dimitri Vayanos interviewed by Viv Davies,

Date Published

Fri, 11/11/2011

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See Also

Related Vox Talks:

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Topics

Europe's nations and regions Financial markets Politics and economics
Tags
ECB, default, Greece, Eurozone crisis, debt restructuring

Related Article(s)

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The Greek revolt: Good news for Europe

Charles Wyplosz 04 November 2011

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The Greek revolt, even if short lived, is good news on the European crisis front – it might provoke the long-awaited policy turnaround that is necessary to end the Eurozone crisis. It may finally awaken EZ leaders to the futility of the path they’ve chosen.  Cherry on the pie: the unexpected interest rate cut by the ECB signals the advent of a less dogmatic central bank in the face of an impending recession.

The Greeks have a point

Greek sovereignty has been trampled over again and again.

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Topics:  Europe's nations and regions Financial markets Politics and economics

Tags:  ECB, default, Greece, Eurozone crisis, debt restructuring

European summits in ivory towers

Paul De Grauwe 26 October 2011

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Imagine an army going to war. It has overwhelming firepower. The generals, however, announce that they actually hate the whole thing and that they will limit the shooting as much as possible. Some of the generals are so upset by the prospect of going to war that they resign from the army. The remaining generals then tell the enemy that the shooting will only be temporary, and that the army will go home as soon as possible. What is the likely outcome of this war? You guessed it. Utter defeat by the enemy.

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Topics:  EU institutions International finance Monetary policy

Tags:  ECB, inflation targeting, Eurozone crisis, EFSF

Resolving the current European mess

Charles Wyplosz 25 October 2011

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Editors' note: This column forms part of a VoxEU.org eBook 'The Future of Banking', to be published on Tuesday 25 October.

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Topics:  EU institutions EU policies International finance

Tags:  ECB, eurozone, sovereign debt, EFSF

Capping interest rates to stop contagion in the Eurozone

Bernard Delbecque 17 October 2011

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A straightforward solution to stop contagion would be to appoint the ECB as a lender of last resort in the government bond markets (Wyplosz 2011a). By making it clear that it is fully committed to exert this function, the ECB would restore confidence in the markets.

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Topics:  EU institutions EU policies

Tags:  ECB, contagion, Eurozone crisis, EFSF

A failsafe way to end the Eurozone crisis

Charles Wyplosz 26 September 2011

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The annual gathering of finance ministers and central bank governors at the IMF/World Bank meetings in Washington seems to have been an epiphany for Eurozone leaders. Finally, there seems to be agreement that their July 2011 agreement was insufficient (Reuters 2011).

In a previous Vox column, I sketched a way of stopping the public debt crisis that is engulfing the Eurozone (Wyplosz 2011). Here I develop this idea into a coherent proposal that, if adopted, would immediately stop the rot.

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Topics:  Global crisis

Tags:  ECB, moral hazard, Eurozone crisis, EFSF, debt guarantee

The damaged ECB legitimacy

Anne Sibert 15 September 2011

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The ECB’s role has evolved in its decade-long existence. In this note I describe how the choices of the ECB have damaged the institution’s legitimacy. This matters because decreased legitimacy lowers the ECB’s future policy effectiveness and weakens the legitimacy of all other institutions of governance in the EU, including the European Commission, the European Court of Justice, and the European Parliament.

In evaluating the ECB’s performance, I split the last eight years into two parts:

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Topics:  EU policies Europe's nations and regions Global crisis Institutions and economics

Tags:  ECB, transparency, Eurozone crisis

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