The European Central Bank’s transmission protection instrument to limit divergences in borrowing costs allows for sterilised purchases of sovereign paper to prevent cross-country interest rate spreads from reaching unspecified unwarranted levels. The TPI does not aim at influencing overall euro area monetary conditions, but at preserving the effectiveness of monetary policy in individual countries: protecting the ‘monetary policy transmission mechanism’. The ECB needs to formulate a TPI ‘user manual’ to clear up any vagueness which could complicate its activation.
Recession debate misses the point By Julian Jacobs and Mark Sobel In the aftermath of two consecutive quarters of negative growth, the question of whether the US has entered recession has become deeply politicised. Attention would be better spent focused on debating the policy choices that can best protect America’s most vulnerable.
MEETINGS Vulnerability in the euro area Monday 12 September, Roundtable Following the latest governing council meeting, Mahmood Pradhan, former deputy director of the European department at the International Monetary Fund, joins OMFIF’s Mark Sobel to discuss the challenges the ECB faces and the instruments at its disposal.
ON DEMAND Why public asset owners are at an inflection point Christine Mikolajuk, EMEA chief operating officer for global client management at BNY Mellon, joins Patricia Haas Cleveland, OMFIF US president, to discuss their latest report, ‘The Evolution of Public Asset Owners’.
LATEST REPORT Sustainable Policy Institute Journal In the summer edition of the journal, contributors lay out why the ‘S’ in ESG is becoming a priority for investors and why social and human rights issues are taking centre stage.
