A new report by Positive Money Europe proposes to break the deadlock on the ECB’s secondary mandate. Rather than cherry-picking its secondary objectives, the ECB should coordinate with other EU institutions to seek clarity on which EU priorities the ECB should support.
The new inflation target of the ECB offers minimalistic improvements and lacks credibility. Although the ECB wants to get rid of its deflationary bias, it shies away from considering more forceful and radical instruments that could achieve that, giving itself instead more convenient justifications for missing the target in the future. The ECB will have to consider more paradigmatic changes to its monetary policy when it next reviews its strategy in 2025.
The European Central Bank recently closed a survey asking interested individuals and organisations for their views on a digital euro. Positive Money Europe responded to the survey, making clear what we view as important in designing a digital euro that truly benefits people.