The ECB’s primary mission is to maintain consumer price stability, but while doing so it omits an important item of household consumption: the cost of housing. It is now time to fix this strange exception which induces biases in the design of the ECB’s monetary policy.
The recent declarations of new European Central Bank president Christine Lagarde on the possible role of her institution in the fight against climate change have revived pushbacks from central bankers and financial commentators against “green quantitative easing”. However, the critics have often misrepresented what campaigners actually want.
EU Treaties are no obstacle for the Eurogroup to take decisive actions in favour of gender diversity in the European Central Bank.
In a recent speech, the German central bank’s governor objected to Positive Money Europe’s “green quantitative easing” proposal. But his objections are biased, wrong-headed and surmountable.
Seven years after Mario Draghi’s heroic “whatever it takes” speech, the European Central Bank needs to find new ways to reaffirm its ability to act.