The Response of the European Central Bank to the Current Pandemic Crisis: Monetary Policy and Prudential Banking Supervision Decisions

2020 ◽  
Vol 17 (3-4) ◽  
pp. 231-256
Author(s):  
Christos V. Gortsos
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
European Central Bank ◽  
Point Of View ◽  
Banking Supervision ◽  
European Central ◽  
Policy Measures ◽  
Systematic Point

Immediately after the outbreak of the current pandemic crisis, the EU developed a (rather) consistent strategy, by taking measures in order to deal with health emergency needs, support economic activity and employment, preserve monetary and financial stability and prepare the ground for recovery; these contain a combination of government fiscal stimuli (with extensive resort to the principle of solidarity), emergency liquidity and monetary policy measures and measures relating to financial stability. After briefly reviewing all these measures from a systematic point of view, the present article further analyses the role of the European Central Bank (ECB) during the first phase of this crisis, both in its capacity as a monetary authority within the Eurosystem and in its capacity as prudential banking supervisory authority within the Single Supervisory Mechanism (SSM), with particular emphasis on the treatment of non-performing loans (NPLs). Its specific contribution to financial macro-prudential oversight within European Systemic Risk Board (ESRB) is also highlighted.

scholarly journals United in Diversity? The Relationship between Monetary Policy and Prudential Supervision in the Banking Union

2018 ◽  
Vol 14 (2) ◽  
pp. 283-310
Author(s):  
Matthias Goldmann
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
European Central Bank ◽  
Holistic Approach ◽  
Legal Framework ◽  
Banking Union ◽  
Prudential Supervision ◽  
Single Supervisory Mechanism ◽  
European Central

Banking Union – Single Supervisory Mechanism – Economic interplay between monetary policy and prudential supervision – Strict separation envisaged by the Single Supervisory Mechanism legal framework – Legal framework does not prevent a more holistic approach – Financial stability is a legitimate consideration for monetary policy-making – Price stability is a legitimate concern for prudential supervision – Challenge to European Central Bank legitimacy and independence – Democratising the European Central Bank

scholarly journals The European Central Bank, machinic enslavement, and the Greek public sector

2016 ◽  
Vol 2 (1) ◽  
pp. 45-61
Author(s):  
Radman Selmic
Keyword(s):  
Public Sector ◽  
Central Bank ◽  
European Central Bank ◽  
Eurozone Crisis ◽  
The Public ◽  
European Central ◽  
Greek Crisis ◽  
Financial Infrastructure ◽  
Policy Measures

This article investigates the role of the European Central Bank (ECB) in transferring financial and moral responsibility for the Eurozone crisis from the private to the public sector. Focusing on Greece, I argue that the ECB constructed the morality of the public debtor in such a way as to make this transfer of responsibility easier and the imposition of austerity measures justifiable. This in part relied on a shift in the ECB’s discourse, which came to define the crisis exclusively in terms of public sector responsibility. However, the ECB also employed a range of non-linguistic policy measures aimed at intervening in the crisis. To interpret these measures I draw on Deleuze and Guattari’s concept of ‘machinic enslavement’, arguing that the ECB contributed to the Greek crisis not only by defining it discursively but also by reshaping the country’s financial infrastructure in crucial ways.

scholarly journals ROLE OF THE EUROPEAN CENTRAL BANK IN COMBATING THE FINANCIAL CRISIS IN THE EUROPEAN UNION

2019 ◽  
Vol 7 (1) ◽  
pp. 97
Author(s):  
Justyna Maliszewska-Nienartowicz ◽  
Amanda Witulska
Keyword(s):  
European Union ◽  
Monetary Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Economic Crisis ◽  
European Central Bank ◽  
The European Union ◽  
European Central

This work presents the  European Central Bank’s role in eliminating economic crisis in the European Union. It contains roots and course of the financial slowdown in the eurozone. The Authors show competences of the institution before and its functions during the crisis. Finally, there was made an attempt to evaluate the effectiveness of the ECB monetary policy.

Twenty Years of European Central Bank Monetary Policy: A Keynesian and Austrian Perspective

2019 ◽  
Vol 239 (5-6) ◽  
pp. 797-840 ◽  
Author(s):  
Ad van Riet
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Euro Area ◽  
European Central Bank ◽  
Aggregate Demand ◽  
Point Of View ◽  
Financial Policy ◽  
European Central ◽  
Long Time

Abstract This article reviews how the European Central Bank (ECB) implemented its monetary policy for the euro area from 1999 to 2018 from two perspectives. Taking a Keynesian point of view, the euro area economy was beset for a long time by secular stagnation and required the ECB to ensure a protracted period of relatively low interest rates to provide continuous support to aggregate demand at the level of the Economic and Monetary Union (EMU). By contrast, the Austrian School of Economics argues that the low-interest rate bias of the ECB caused financial excesses and prevented a more rapid reallocation of unviable resources necessary for a sustainable expansion of aggregate supply. Both the Keynesian and the Austrian paradigm appear relevant when examining the monetary and financial aspects of the euro area business cycle and the secular decline of interest rates over the past 20 years. For most of the time, ECB monetary policy was the ‘only game in town’ and the EMU architecture was unable to deliver the balanced macroeconomic and financial policy mix required for a sustainable path of the euro area economy.

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