ECB Monetary Policy in a Quandary
Abstract It seems clear that the ECB will raise interest rates in July 2022 and end its asset purchase program. This should send a strong and important signal to markets and economic players that the ECB continues to take its mandate for price stability seriously. However, it cannot be said with abs...
| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Springer
2022-06-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-022-3207-3 |
| _version_ | 1811334338052096000 |
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| author | Kerstin Bernoth Marcel Fratzscher |
| author_facet | Kerstin Bernoth Marcel Fratzscher |
| author_sort | Kerstin Bernoth |
| collection | DOAJ |
| description | Abstract It seems clear that the ECB will raise interest rates in July 2022 and end its asset purchase program. This should send a strong and important signal to markets and economic players that the ECB continues to take its mandate for price stability seriously. However, it cannot be said with absolute certainty that these monetary policy decisions herald the start of a gradual tighter stance toward monetary policy normalisation. This is because economic uncertainty is currently extremely high. The ECB therefore finds itself in a difficult dilemma: It must take decisive action against high inflation, but should retain plenty of flexibility to be able to respond to a renewed crisis. |
| first_indexed | 2024-04-13T17:06:29Z |
| format | Article |
| id | doaj.art-c8891de117d84228ab70aa0cdf0a4f7e |
| institution | Directory Open Access Journal |
| issn | 1613-978X |
| language | deu |
| last_indexed | 2024-04-13T17:06:29Z |
| publishDate | 2022-06-01 |
| publisher | Springer |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj.art-c8891de117d84228ab70aa0cdf0a4f7e2022-12-22T02:38:27ZdeuSpringerWirtschaftsdienst1613-978X2022-06-01102642342510.1007/s10273-022-3207-3ECB Monetary Policy in a QuandaryKerstin Bernoth0Marcel Fratzscher1Abteilung Makroökonomie, Deutsches Institut für WirtschaftsforschungDeutsches Institut für WirtschaftsforschungAbstract It seems clear that the ECB will raise interest rates in July 2022 and end its asset purchase program. This should send a strong and important signal to markets and economic players that the ECB continues to take its mandate for price stability seriously. However, it cannot be said with absolute certainty that these monetary policy decisions herald the start of a gradual tighter stance toward monetary policy normalisation. This is because economic uncertainty is currently extremely high. The ECB therefore finds itself in a difficult dilemma: It must take decisive action against high inflation, but should retain plenty of flexibility to be able to respond to a renewed crisis.https://doi.org/10.1007/s10273-022-3207-3 |
| spellingShingle | Kerstin Bernoth Marcel Fratzscher ECB Monetary Policy in a Quandary Wirtschaftsdienst |
| title | ECB Monetary Policy in a Quandary |
| title_full | ECB Monetary Policy in a Quandary |
| title_fullStr | ECB Monetary Policy in a Quandary |
| title_full_unstemmed | ECB Monetary Policy in a Quandary |
| title_short | ECB Monetary Policy in a Quandary |
| title_sort | ecb monetary policy in a quandary |
| url | https://doi.org/10.1007/s10273-022-3207-3 |
| work_keys_str_mv | AT kerstinbernoth ecbmonetarypolicyinaquandary AT marcelfratzscher ecbmonetarypolicyinaquandary |