The ECB’s rule of conduct and ethical framework is still lagging behind the US Federal reserve.
Amidst soaring inflation, central bankers should avoid panicking prematurely and compare the current situation to that of stagflation as seen in the 1960s and 1970s. Even persistent inflation has causes other than monetary policy, Economist and historian Eric Monnet reminds us.
Acting on a long-standing recommendation from Positive Money Europe, the European Parliament’s ECON Committee announced last week that it is ready to negotiate a new accountability framework with the ECB. It remains unclear however if the ECB will join the initiative.
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.
To contribute to the Conference on the future of the EU and the ECB’s strategy review, Positive Money Europe and its partners have launched the European Citizens Bank, a participatory project which empowers citizens to formulate recommendations on the future orientations of the Eurozone’s central banks.