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Die EZB-Geldpolitik in der Zwickmühle
[ECB Monetary Policy in a Quandary]

Author

Listed:
  • Kerstin Bernoth

    (Deutsches Institut für Wirtschaftsforschung)

  • Marcel Fratzscher

    (Deutsches Institut für Wirtschaftsforschung)

Abstract

It seems clear that the ECB will raise interest rates in July 2022 and end its asset purchase program. This should send a strong and important signal to markets and economic players that the ECB continues to take its mandate for price stability seriously. However, it cannot be said with absolute certainty that these monetary policy decisions herald the start of a gradual tighter stance toward monetary policy normalisation. This is because economic uncertainty is currently extremely high. The ECB therefore finds itself in a difficult dilemma: It must take decisive action against high inflation, but should retain plenty of flexibility to be able to respond to a renewed crisis.

Suggested Citation

  • Kerstin Bernoth & Marcel Fratzscher, 2022. "Die EZB-Geldpolitik in der Zwickmühle [ECB Monetary Policy in a Quandary]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(6), pages 423-425, June.
    • Handle: RePEc:spr:wirtsc:v:102:y:2022:i:6:d:10.1007_s10273-022-3207-3
    DOI: 10.1007/s10273-022-3207-3
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    References listed on IDEAS

    as
    1. Kristin Forbes, 2019. "Has globalization changed the inflation process?," BIS Working Papers 791, Bank for International Settlements.
    2. Charles Goodhart & Manoj Pradhan, 2020. "The Great Demographic Reversal," Economic Affairs, Wiley Blackwell, vol. 40(3), pages 436-445, October.
    3. Kerstin Bernoth & Gökhan Ider, 2021. "Inflation im Euroraum: Faktoren wirken meist nur temporär, aber Risiko für länger erhöhte Inflation vorhanden," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 88(42), pages 695-704.
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    More about this item

    Keywords

    E31; E52; E58;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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