Why are food and energy prices going up and down so quickly?
Fossilflation and climateflation explained
Walking the Tightrope: The Trade-Offs Between Financial and Price Stability
Christine Lagarde has recently argued that the price stability and financial stability objectives of the European Central Bank (ECB) are not at odds with one another. While in tranquil times this assertion may be true, it does not apply in the current context. Higher rates create turmoil in the financial markets, jeopardising the financial stability objective.
Profits, not wages, should be the ECB’s main concern
With inflation reaching its highest levels since the euro was introduced, ECB officials have been wary of a wage-price spiral. Yet it’s profits, not wages, that are the real culprits in today’s inflation story.
Windfall profits for banks, crises for people: the money system is unfair and needs to be reformed
As a consequence of the European Central Bank (ECB) raising its interest rates, banks are making sky-high unearned extra profits, while people and public budgets are only losing out. We believe that a money system that benefits private over public interests needs to be deeply reformed.
EU Parliament offers historic solution on ECB’s secondary objectives
On the 16th of February, the European Parliament adopted a resolution offering a solution to the long-neglected secondary mandate of the European Central Bank (ECB) but fails to acknowledge the link between our dependence on fossil fuels and price stability.
The ECB’s climateflation headache
Extreme weather events are growing in size, power and frequency, meaning our economies are increasingly disrupted. We show how this results in climateflation, which poses a dilemma to the ECB’s policymaking. In a world plagued by supply shocks induced by climate change, conventional monetary policy faces complicated trade-offs in terms of economic activity and prices, while at the same time proving incapable of tackling the source of inflation.