Hawks succeed in ECB review, Central banks must change course to avoid possible financial crisis, and more
THE WEEKEND REVIEW
Latest opinion and analysis from OMFIF around the world
5-9 July 2021, Vol.12 Ed.27
Hawks succeed in ECB review – but can they win next battle?: The ECB has introduced greater leeway into its inflation-targeting regime, rediscovering an old if oft-forgotten tradition of the German Bundesbank – flexibility. The agreement set a symmetrical 2% price rise goal compared with the previous objective of ‘close to, but below, 2%’. Crucially, it leans in the direction of the council’s monetary ‘hawks’ by rejecting any explicit policy target of steering inflation directly towards the 2%-plus range, write David Marsh and Danae Kyriakopoulou.
Central banks must change course to avoid possible financial crisis: Central banks around the world appear to wish to stick to the ‘static approach’ of monetary policy. Following this course could trigger a financial crisis. If central banks do not start changing direction now, they could face a much tougher task if inflation takes hold in coming years, writes Jacques de Larosière.
Channelling capital towards renewable energy technology: To achieve net zero, it is essential for policy-makers and the market to work together. OMFIF has convened a panel with the OECD, EIB, EBRD and Hermes Investment to explore developing a pipeline of investment grade projects and the policies, regulation and frameworks essential to channel capital towards renewable energy. Watch.
Role of just transition in developing sustainable cities: Peggy Tse, chief strategy officer of the Future City Summit and upstream officer at the International Finance Corporation, joins Emma McGarthy, programmes manager at OMFIF’s Sustainable Policy Institute, to discuss the policies, tools and strategies required in a just transition to sustainable cities.
Political elite is bending European law: While the project of European integration has created peace and prosperity, the pressure to centralise elementary areas of national sovereignty stands in opposition to a framework created on the principle of subsidiarity. Political elites are now trying to achieve their goal of centralisation by bending European law, writes Thomas Mayer.