Should the ECB be concerned about the recent rise in inflation?

by Christophe Blot, Caroline Bozou and Jérôme Creel In August 2021, inflation in the euro area reached 3% year-on-year. This level, which has not been seen since November 2011, exceeds the European Central Bank’s target of 2%. This recent momentum is being driven partly by oil prices, but there has been a simultaneous rebound in […]

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Monetary Policy During the Pandemic: Fit for Purpose?

Christophe Blot, Caroline Bozou and Jérôme Creel In a recent Monetary Dialogue Paper for the European Parliament, we review and assess the different policy measures introduced by the ECB since the inception of the COVID-19 crisis in Europe, mainly the extension of Asset Purchase Programme (APP) measures and the development of Pandemic Emergency Purchase Programme […]

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Europe’s recovery plan: Watch out for inconsistency!

by Jérôme Creel (OFCE & ESCP Business School) [1] On 27 May, the European Commission proposed the creation of a new financial instrument, Next Generation EU, endowed with 750 billion euros. The plan rests on several pillars, and will notably be accompanied by a new scheme to promote the revival of activity in the countries hit hardest […]

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How to spend it: A proposal for a European Covid-19 recovery programme

Jérôme Creel, Mario Holzner, Francesco Saraceno, Andrew Watt and Jérôme Wittwer[1] The Recovery Fund recently proposed by the EU Commission marks a sea-change in European integration. Yet it will not be enough to meet the challenges Europe faces. There has been much public debate about financing, but little about the sort of concrete projects that […]

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It seems like it’s raining billions

Jérôme Creel, Xavier Ragot, and Francesco Saraceno The second meeting of the Eurogroup did the trick. The Ministers of Finance, after having once again laid out their divisions on the issue of solidarity between euro area Member States on Tuesday 7 April 2020, reached an agreement two days later on a fiscal support plan that can […]

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The impact on redistribution of the ECB’s monetary policy

By Jérôme Creel and Mehdi El Herradi A few weeks before Christine Lagarde assumes the presidency of the European Central Bank (ECB), it may be useful to examine the balance sheet of her predecessors, not only on macroeconomic and financial matters but also with respect to inequality. In recent years, the problem of the redistributive effects […]

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Europe’s fiscal rules – up for debate

By Pierre Aldama and Jérôme Creel At the euro zone summit in December 2018, the heads of state and government hit the brakes hard on the reform of fiscal governance: among the objectives assigned to the euro zone’s common budget that they are wishing for, the function of economic stabilization has disappeared. This is unfortunate, […]

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The imperative of sustainability economic, social, environmental

OFCE[1], ECLM[2], IMK[3], AKW[4] It was during the climax of the so-called Eurozone sovereign debt crisis that we engaged into the independent Annual Growth Survey – the project was first discussed at the end of the year 2011 and the first report was published in November 2011. Our aim, in collaboration with the S&D group […]

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The euro is 20 – time to grow up

By Jérôme Creel and Francesco Saraceno [1] At age twenty, the euro has gone through a difficult adolescence. The success of the euro has not been aided by a series of problems: growing divergences; austerity policies with their real costs; the refusal in the centre to adopt expansionary policies to accompany austerity in the periphery countries, which […]

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The ECB is still worried about the weakness of inflation

By Christophe Blot, Jérôme Creel and Paul Hubert The President of the European Central Bank, Mario Draghi, recently announced that the increase in the ECB’s key interest rate would come “well past” the end of the massive purchases of bonds (scheduled for September 2018), mainly issued by the euro zone countries, and at a “measured […]

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