Thursday 17 March 2022 – Vol.13 Ed.11.4
Commentary: How the ECB can improve its communications
By Moritz Kraemer in Stuttgart
As the European Central Bank approaches its first significant monetary tightening since 2011, President Christine Lagarde faces a threat of cacophony among the voices making up the 25-member governing council. This endangers the cohesion and the credibility of the central bank as it confronts the economic and political repercussions of the war in Ukraine, including higher and persistent inflation.
Read the full commentary on the website.
Commentary: Solving the euro area’s problem will take years
By Neil Williams in LondonBefore Covid-19 and the Russian invasion of Ukraine, the worst of the euro area’s macro strains looked to be behind it, as the lagged effects of ultra-low bond yields flowed through to confidence and higher loan demand. While helpful in addressing deflation, monetary loosening should never have been expected to solve the underlying problem – a monetary union devoid of economic union. Resolving this will take years.
Read the full commentary on the website.
