10 January 2024 By Matteo Falagiarda Within the euro area, countries in central and eastern Europe have recently experienced the highest inflation rates. But why, exactly? The ECB Blog looks at the reasons for these higher prices and highlights the …
30 December 2023 By Paschal Donohoe (President of the Eurogroup), Christine Lagarde (President of the European Central Bank), Roberta Metsola (President of the European Parliament), Charles Michel (President of the European Council) and Ursula von der …
by Lukas Hack, Klodiana Istrefi and Matthias Meier[1] This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy. A dovish Federal Open Market Committee (FOMC) delays policy rate increases, while a …
18 December 2023 By Friderike Kuik, Christiane Nickel, Miles Parker and Wolfgang Modery This is the sixth post in our series accompanying COP28. The ECB’s primary mandate is to maintain price stability. So why do we talk so much about climate change? In …
12 December 2023 By Ludivine Berret, Jean Boissinot, Marianna Caccavaio, Michael Grill, Paul Hiebert and Fabio Tamburrini This is the fifth post in our series accompanying COP28. Climate change can endanger financial stability. The ECB Blog looks at how a …
6 December 2023 By Mariassunta Giannetti, Martina Jasova, Maria Loumioti, Caterina Mendicino This is the fourth post in our series accompanying COP28. Banks are talking more about the environment. But does such talk go hand in hand with greener lending? …
4 December 2023 By Senne Aerts, Martina Spaggiari and Livio Stracca This post is the third in our series accompanying COP28. Policy makers around the world need to move faster to reach net zero emissions by 2050. Latest scenarios are alarming as the …
by Stefania Albanesi, António Dias da Silva, Juan Francisco Jimeno, Ana Lamo and Alena Wabitsch[1] Recent advances in artificial intelligence (AI) have revived the debate about the impact of new technologies on jobs (e.g. Frey and Osborne, 2017; Susskind, …
by Michele Lenza, Inés Moutachaker and Joan Paredes[1] Inflation forecasts and their risks are central to monetary policy decisions. The strategy review concluded in 2021[2] highlighted that most Eurosystem models used to forecast inflation are linear. …
By Matteo Ciccarelli, Friderike Kuik and Catalina Martínez Hernández[1] Climate change has implications for price stability and the work of central banks. For instance, it may increase the volatility and heterogeneity of inflation, and hotter summers may …
by Christian Kubitza[1] On the basis of insurance companies’ bond investments, I examine how shifts in investors’ demand for corporate bonds affect non-financial bond issuers. When demand for their bonds increases, firms’ financing costs decrease, which …
by Maria Cecilia Bustamante and Francesca Zucchi[1] Regulation to control carbon emissions forces firms to think hard about their optimal policy for carbon management. We set out a unified approach to studying the trade-offs posed by carbon pricing for …
by Johannes Breckenfelder and Marie Hoerova[1] Using runs on mutual funds in March 2020 as a laboratory, this article examines central bank interventions that can help alleviate a liquidity crisis in the non-bank financial sector, given that non-banks do …
by Ernest Dautović, Leonardo Gambacorta and Alessio Reghezza[1] ECB Banking Supervision’s recommendation for banks not to pay out dividends during the coronavirus (COVID-19) pandemic led to increased lending to non-financial corporations. Complying banks’ …
by Teresa Messner, Fabio Rumler and Georg Strasser[1] This article examines price differences across a national border where most factors commonly used to explain international price differences are absent. While some products cost the same on both sides …
by Laura Lebastard and Roberta Serafini[1] In this article we assess the impact of the pandemic and the ensuing disruptions to global value chains (GVCs) on exporting firms. To this end, we use a rich dataset at the firm-product-partner country level for …
by Dimitris Georgarakos, Geoff Kenny and Justus Meyer[1] In this article we exploit the richness and flexible design of the ECB’s Consumer Expectations Survey (CES) to explore in detail recent changes in consumers’ medium-term inflation expectations. The …
by Tilman Bletzinger, William Greif, and Bernd Schwaab[1] Modern financial systems rely on safe assets. A “safe asset” is defined by three characteristics (Brunnermeier et al., 2016, 2017, Brunnermeier and Huang, 2018, Gorton and Ordonez, 2022). First, it …
