Marco Buti, Vitor Gaspar, Wednesday, December 24, 2008

This column looks back at the first ten years of the euro, from the uncertainty surrounding its adoption to the one caused by the current crisis. In between, the euro proved a resounding success. It is worth remembering the magnitude of the original challenge in order to use the crisis as an opportunity to strengthen European governance.

John Muellbauer, Monday, October 27, 2008

The current financial crisis will probably lead to an unnecessarily deep recession. This column suggests that European central banks, misguided by outdated econometric models, should have cut rates faster and deeper in a coordinated fashion. They should now scrap these models and agree on a large, coordinated cut of 2 percentage points.

Daniel Gros, Stefano Micossi, Saturday, September 20, 2008

The radical moves in the US have direct implications for European banks and indirect implications for European governments. This column discusses the likely channels and notes that several European banks are both too big to fail and may be too big to be saved by their national governments alone.

Petra Geraats, Francesco Giavazzi, Charles Wyplosz, Tuesday, September 9, 2008

Recent data suggest that the ECB’s credibility is worryingly low on the inflation-fighting front. This column explains how improved ECB transparency and communication could help it to regain credibility with markets and investors.

Christopher Crowe, Ellen E. Meade, Sunday, July 27, 2008

The European Central Bank is under fire from Nicholas Sarkozy. This column introduces a new set of measures of central bank independence and transparency, which shows that the ECB is markedly more transparent than the Eurozone members’ central banks were in the 1990s.

Alan Ahearne, Juan Delgado, Jakob von Weizsäcker, Friday, June 27, 2008

Housing booms associated with credit booms are particularly damaging, but the ECB’s one-size-fits-all monetary policy is useless in pricking national bubbles. Euro area governments should use national banking regulations to dampen national bubbles and countercyclical housing taxes to prick bubbles that arise.

Guido Tabellini, Monday, June 23, 2008

The ECB and the Fed are pursuing very different policies on inflation fighting and the use of monetary aggregates in guiding policy. One of Italy’s leading economists argues that either the ECB or the Fed is making a mistake.

Francesco Giavazzi, Monday, June 2, 2008

Editor's Note: Originally posted 2 June 2008.
There has been a persistent spread between the rate at which banks lend each other money and government-backed securities yields in recent months. This column describes hypotheses explaining the spread – including the possibility that banks aren’t lending in order to bankrupt acquisition targets.

Helge Berger, Volker Nitsch, Friday, May 30, 2008

The European Central Bank’s Governing Council continues to expand as new economies adopt the euro. This column presents empirical evidence that the optimal central bank committee size is seven to ten members – far fewer than the 22 members the ECB will have come 2009.

Richard Baldwin, Saturday, May 8, 2010

This column, first posted 17 May 2008, reviews Willem Buiter's analysis of why the ECB is so hesitant to buy debt. Central banks can go broke – and some in developing countries have done so recently. The ECB is now lending against dubious collateral. An ECB recapitalisation seems unthinkable at the moment, but that’s why it is a good time to think the unthinkable. Willem Buiter considers the question at length in CEPR Policy Insight No. 24 and argues that Eurozone fiscal authorities should, ASAP, agree on a formula for fiscal burden-sharing should an ECB recapitalisation ever be necessary.

Petra Geraats, Francesco Giavazzi, Charles Wyplosz, Thursday, February 7, 2008

The latest Monitoring the European Central Bank Report argues that the ECB has a serious credibility and communication problem: the way the Governing Council makes its interest rate decisions remains clouded.

Mika Widgrén, Monday, February 25, 2008

The Fed’s policy changes seem nimble compared to the ECB’s. Here one of Europe’s leading analysts of voting mechanisms argues that the ECB’s institutional design accounts for the difference. Forthcoming ECB reforms are unlikely to alleviate the problem.

Petra Geraats, Francesco Giavazzi, Charles Wyplosz, Thursday, February 7, 2008

Central Banking works by guiding the expectations of savers, investors, consumers and markets – not an easy job. This column, based on the latest report in CEPR’s series ‘Monitoring the European Central Bank’, argues that the job would be easier if the ECB published its anticipated interest rate path and voting records.

Carlo Favero, Francesco Giavazzi, Monday, January 21, 2008

The European Economic and Monetary Union (EMU) has created a new economic area, larger and closer with respect to the rest of the world. Area-specific shocks are more important than country-specific, thus it is not surprising the European Central Bank (ECB) use models to study optimal monetary policy in the Euro area assuming it works essentially as a closed economy, hit primarily by domestic shocks. The authors of CEPR DP6654 explore the variable most directly related to current and expected monetary policy, the yield on long-term government bonds, and determine whether the response of long-term rates is consistent with a closed economy.

Tommaso Monacelli, Friday, December 14, 2007

The ECB’s decision to leave interest rates unchanged lacks transparency and appears inconsistent with the specific policy framework that the ECB itself has decided to embrace. In the current period of great uncertainty, transparency would pay large dividends.

Benjamin K. Johannsen, Andrew Levin , Wednesday, October 24, 2007

Recent history of long-run inflation expectations suggests reasonably well-anchored expectations in both regions, however no studies to date have compared the recent evolution and dispersion across forecasters' long-horizon projections in the United States to those in the EU. The authors of CEPR DP6536 use daily evidence from financial markets and surveys, which reveal a substantially greater degree of forecaster disagreement about long-run inflation outcomes in the United States than in the euro area.

Stephen Cecchetti, Wednesday, August 15, 2007

A revised and updated version of the 13 August column on the basic how's and why's of what the Fed has been doing to calm financial markets.

Stephen Cecchetti, Monday, August 13, 2007

Here are the basic how's and why's of what the Fed has been doing to calm financial markets.

Charles Wyplosz, Saturday, July 21, 2007

The ECB’s opacity, lack of open debate and refusal to decide by voting bear at least some responsibility in the declining support for the euro. This makes the ECB an easy target for politicians looking for scapegoats. For the good of the Euro-area citizens, the ECB ought to change its ways.

Francesco Giavazzi, Tuesday, June 19, 2007

Sarkozy repeatedly criticised the European Central Bank during the campaign; his intuition was correct but his aim was off. By forcing the ECB to be more transparent and accountable, he would contribute to improving monetary policy in Europe.

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