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21st century central banking needs a renewed democratic mandate! The ECB Central Bank interventions are not a one-time phenomenon, but a permanent feature of stabilizing an ill-regulated financial system. Our joint call [Thread]: https://transformative-responses.org/central-banking-joint-call/
![21st century central banking needs a renewed democratic mandate! The ECB Central Bank interventions are not a one-time phenomenon, but a permanent feature of stabilizing an ill-regulated financial system. Our joint call [Thread]: https://transformative-responses.org/central-banking-joint-call/](https://pbs.twimg.com/media/EzpQoNXXIAUX8ux.jpg "21st century central banking needs a renewed democratic mandate! The ECB Central Bank interventions are not a one-time phenomenon, but a permanent feature of stabilizing an ill-regulated financial system. Our joint call [Thread]: https://transformative-responses.org/central-banking-joint-call/")
Central bank interventions, however necessary, have side effects: they exacerbate the ecological crisis. The ECB’s asset purchases have a bias to carbon-intensive companies: https://neweconomics.org/uploads/files/Decarbonising-is-easy.pdf
The ECB must now integrate climate risks in its own monetary policy operations. It needs to stop supporting high-carbon industries and align its framework on the transition to a low-carbon economy. See green TLTRO report: http://www.positivemoney.eu/wp-content/uploads/2020/09/Green-TLTROs.pdf
In order to reduce the need for central bank intervention and stabilize the financial system, shadow banks should be tightly regulated. Not sure everyone at @ecb has realized this? Excellent speech by @Isabel_Schnabel https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201119_1~4a1ff0daf9.en.html
Monetary policy is not neutral and has never been. It relies exclusively on financial markets for its implementation and transmission to the real economy. Read @BJMbraun https://transformative-responses.org/wp-content/uploads/2021/01/TR_Report_Braun_FINAL.pdf
Assets prices have increased massively and inequality has significantly worsened. The ECB should acknowledge this and develop alternative (more direct) options that support labor markets and wage growth! As @Pierre_Monnin excellently argued @VMRConstancio
Minsky without Keynes: Our macro financial regime requires central banks to play an active role especially in sovereign bond markets to meet their price stability mandate. This requires a new mechanism of monetary and fiscal coordination. @danielagabor: https://transformative-responses.org/wp-content/uploads/2021/01/TR_Report_Gabor_FINAL.pdf
The current macroeconomic situation has rendered fiscal policy more important and effective. The EU’s fiscal framework requires a redesign – as discussed in this recent letter organized by @forfinancewatch @NEF @Frank_vanlerven @BenLallemand https://www.finance-watch.org/publication/reshaping-the-european-fiscal-framework/
To add legitimacy for the ECB acting on its secondary objectives, the EP should develop a formal procedure, specifying and prioritizing the policy objectives beyond the ECB’s primary mandate! https://www.euractiv.com/section/economic-governance/opinion/the-ecb-needs-political-guidance-on-secondary-objectives/
@jvtkloooster provides a detailed argument of this in his conference paper here:
https://transformative-responses.org/wp-content/uploads/2021/01/TR_Report_vant-Klooster_FINAL.pdf
https://transformative-responses.org/wp-content/uploads/2021/01/TR_Report_vant-Klooster_FINAL.pdf
The ECB is currently conducting its first strategy review in 17 years. Now is the time to establish a comprehensive agenda for the ECB. Towards a resilient, equitable and climate friendly economy. Our full conference conclusions here: https://transformative-responses.org/wp-content/uploads/2021/04/ECB-conference-conclusions_full-report.pdf @magdalena_senn
#NextGenCentralBanking had over 800 participants and a balanced 18 female and male panelists from 18 countries! Massive thank you to everyone that supported this especially Fiona Hauke @w0lf_m @Jmhaas @SchickGerhard @boell_stiftung @Finanzwende
All #NextGenCentralBanking videos can be rewatched here @boell_stiftung https://www.youtube.com/playlist?list=PLQoUnPhwq7cwUx3XLE8sdAVcXNgdI-hCW
My personal highlights were the very controversial all-female debate on monetary financing with @DanielaGabor @GoulardSylvie and Sabine Lautenschläger
And the excellent analysis of the financial meltdown of March 2020 @adam_tooze Annette Vissing-Jorgensen, Martin Hellwig and @sven_giegold
