Market / Economy / Finance & Financial Regulation / ecb / European Union / growth rate / inflation

The case for a derivative market programme

Posted On: Mar 18, 2020   |   Posted By: Bruegel

The case for a derivative market programme

In recent years, the European Central Bank has been unable to raise inflation to a level consistent with its price stability objective, defined as close to, but lower than, 2 percent over the medium term. To a greater or smaller extent, this also applies to the central banks of other advanced economies, including the Fed and the Bank of Japan. The ECB's failure to achieve its goal has not been for want of trying, as it employed forcefully both conventional and unconventional monetary tools to meet its target. The ECB's desire to reach its target is not only reflected by its actions but also by the forecasts it has made over the last six years, which indicate a strong belief that its policy measures would eventually drive up inflation towards the desired level. However, as Darvas (2018) has shown, the ECB's forecasts proved to be systematically wrong, with inflation stubbornly clocking in below target. Such repeated failures could drive one to think that the tools in the hands of the central bank...

Continue reading ...

 








1 in 4 American workers have filed for unemployment benefits during the pandemic

1 in 4 American workers have filed for unemployment benefits during the pandemic

Another 2.1 million people filed initial jobless claims last week. Read more ...

Dr. Fauci: Second wave of COVID-19 can be avoided

Dr. Fauci: Second wave of COVID-19 can be avoided

Dr. Anthony Fauci says a second wave of the novel coronavirus can be avoided if the United States can improve testing and contact tracing. Read more ...

Man who allegedly broke into bank says he did it for a ‘Hot Pocket'

Man who allegedly broke into bank says he did it for a ‘Hot Pocket'

SAN DIEGO, Calif. - Most people who break into a bank do it to get their hands on some money. A man in San Diego said he did to get his hands on a Hot Pocket. The man was... Read more ...

South Carolina mom, boyfriend charged after remains of special needs...

South Carolina mom, boyfriend charged after remains of special needs daughter found in dresser

Authorities say a South Carolina woman and her boyfriend have been arrested and accused of killing the woman's disabled daughter and hiding her body inside a dresser drawer. Read more ...

Trump preparing order targeting social media protections

Trump preparing order targeting social media protections

WASHINGTON - President Donald Trump is preparing to sign an executive order Thursday aimed at curbing liability protections for social media companies, two days after he lashed... Read more ...

Boston Marathon canceled for 1st time in 124-year history

Boston Marathon canceled for 1st time in 124-year history

BOSTON - The Boston Marathon has been canceled for the first time in its 124-year history. Read more ...

Violence again rocks Minneapolis after man's death; 1 killed

Violence again rocks Minneapolis after man's death; 1 killed

Read more ...

Legal and tech policy experts say Trump's executive order draft cracking...

Legal and tech policy experts say Trump's executive order draft cracking down on social media companies is dead on arrival

President Donald Trump is set to sign an executive order seeking to crack down on social media companies after Twitter took the rare step this week of adding fact-checking... Read more ...

Boston Marathon 2020 canceled in historic first

Boston Marathon 2020 canceled in historic first

Add the Boston Marathon to the list of sporting events canceled because of the COVID-19 pandemic. After being postponed from April 20 and moved to Sept. 14, the race was called... Read more ...

Trump Readies Executive Order Targeting Protections For Social Media Companies

Trump Readies Executive Order Targeting Protections For Social Media Companies

The president had threatened social media companies with new regulation or even shuttering, but he alone can't do that. Read more ...