Tag : ECB

Willingless To Take Risk infographics

Willingness to take risk and news about monetary policy

Policy normalisation makes communication particularly important, even more so when monetary policy has been very easy for a very long time and when different tools have been used to that end (policy rate at the zero lower bound or lower, quantitative easing, forward guidance).

 

The right timing of structural reforms

The importance of structural policy is unquestionable. This was clearly explained by Mario Draghi at the ECB Conference in Sintra. However, their impact not only depends on the timing but also on the types of measures, the credibility and the interaction with other policy measures.

 

Eurozone: Blinded by the light?

Eurozone economic growth is robust. This dynamism is shared amongst its members. However, important structural differences remain. The favourable cyclical environment calls for an economic policy to boost potential GDP growth and strengthen the resilience.

 

ECB: Sintra’s syntax

The market reaction to the introductory speech of Mario Draghi at the ECB conference in Sintra was strong
This reflects a high degree of unease about the prospect of a policy normalisation.

 

Endogenous risks loom on the economic horizon

Replace ‘blue sky’ with ‘robust growth’ and ‘umbrellas’ with ‘economic policy instruments’ and you have a description of the global economic environment: robust growth but, if a downturn would come, very little manoeuvring room for fiscal and monetary policies to stimulate growth. All the more reason to keep a watchful eye on the horizon, and to prepare for clouds to appear.

 

The hopes and uncertainty of a new era

A festive spirit has swept Wall Street as investors anticipate tax cuts for both households and companies, and to a lesser extent, greater spending, notably on infrastructure. In contrast, the bond market has slumped.

 

The thin line between complacency and clairvoyance

Blind, complacent, cool-headed, driven by moral hazard, clairvoyant? Or should we follow the example of the Bank for International Settlements and call it “dissonant”? Which term best describes this summer’s market behaviour?

 

New monetary season

For the financial markets, summer’s end is often the occasion for deep-felt upheavals. This summer, investors left on vacation filled with trepidation about the economic impact of Brexit, about robust job creations in the US and how they might change monetary policy prospects, and about the outcome of European banks’ stress tests.

 
 
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