by Serena Di Luccio | Aug 4, 2022
On July 21st, the European Central Bank (ECB) announced that it is raising interest rates by 0.5 per cent, opting for an even higher hike than what was announced in June. Over the past few months, Positive Money Europe has repeatedly warned that higher interest rates are simply not the right solution to current price increases, as they will negatively affect people and jeopardise the well-being of our economies and the future of the post-pandemic green recovery. Why do we think so? In this blog, we answer a few questions about the impact that rising interest rates will have on people’s daily lives.
by Marc Beckmann | Apr 28, 2022
The ECB keeps repeating that it is on a path of monetary policy “normalisation”. But what is behind this phrase and why does the ECB like it so much? I argue that it currently functions to deceive and legitimise the potentially severe effects of policy rate hikes. ...
by Marc Beckmann | Dec 9, 2021
In its new strategy, the ECB decided that housing costs should be better reflected in the inflation index. However, this won’t address citizens’ concerns. If there is anything the ECB can do about the rise in housing costs, it is to change the way it conducts its monetary policy.
by Positive Money Europe | Nov 29, 2021
A new study finds that ECB’s monetary policy affects the wage share of companies and thereby the distribution of income between workers and shareholders. Given that these effects differ by firm characteristics, monetary policy has uneven effects across the euro area. To tackle this, more targeted monetary policy tools should be developed.
by Marc Beckmann | Nov 23, 2021
A recording of Positive Money Europe’s new webinar on the ECB’s neglected secondary mandate is now available online.
by Marie Storli | Nov 12, 2020
The pandemic and current economic crisis exacerbate economic inequality by disproportionately burdening individuals on the lower part of the income distribution. The ECB’s asset purchases have further fueled this trend. It is time the ECB took these distributional effects into account when designing policies and instruments.
