Discover and read the best of Twitter Threads about #ECBForum
Most recents (5)
If people pay attention to everything and know it all, they don't need to form expectations of inflation: they just know it. However, information is incomplete, and we have limited attention. So, we make predictions based on a limited set of information
ideas.repec.org/h/eee/monchp/3…
ideas.repec.org/h/eee/monchp/3…
Theories of attention are theories where people choose whether to spend some scarce resource (time, money, brain capacity) to expand their set of information. With it, they update their expectations. This change in beliefs makes them change some actions.
ideas.repec.org/p/cpr/ceprdp/1…
ideas.repec.org/p/cpr/ceprdp/1…
Read: “It is far more useful to ensure that inflation remains off of people’s radar screens than it would be to attempt to “re-anchor” expected inflation” as the main policy advice in an argument that expectations are not important to understand inflation
doi.org/10.17016/FEDS.…
doi.org/10.17016/FEDS.…
(THREAD) The economy is back from the brink, but not out of the woods, says President Christine @Lagarde in her opening speech at the #ECBForum on Central Banking.
After an unusual recession, the euro area is going through a highly atypical recovery ecb.europa.eu/press/key/date…
1/4
After an unusual recession, the euro area is going through a highly atypical recovery ecb.europa.eu/press/key/date…
1/4
Lagarde: This atypical recovery is leading to rapid growth, but also to supply bottlenecks appearing unusually early in the economic cycle.
The pandemic has also introduced new trends that could produce both upward and downward price pressures.
2/4
The pandemic has also introduced new trends that could produce both upward and downward price pressures.
2/4
Lagarde: These trends include
1⃣ Demand side changes, e.g. people spending their extra savings
2⃣ Supply side changes, e.g. faster digitalisation
3⃣ Faster implementation of the green transition
3/4
1⃣ Demand side changes, e.g. people spending their extra savings
2⃣ Supply side changes, e.g. faster digitalisation
3⃣ Faster implementation of the green transition
3/4
(THREAD) The coronavirus has produced a highly unusual recession and is likely to give rise to an unsteady recovery, says President Christine Lagarde in her opening remarks at the #ECBForum on Central Banking ecb.europa.eu/press/key/date… 1/6
Lagarde: This unusual recession has posed exceptionally high risks and required an exceptional policy response. What has defined this response is the policy mix. Macroeconomic, supervisory and regulatory authorities have dovetailed and made each other’s efforts more powerful 2/6
Lagarde: A continued, powerful and targeted policy response is vital to protect the economy, at least until the health emergency passes and vaccination is well advanced. The right policy mix is essential 3/6
(THREAD) European banking supervision is only five years old but is now well established and has become an irreversible feature of our institutional environment, says Supervisory Board Chair Andrea Enria at the #ECBForum on Banking Supervision bankingsupervision.europa.eu/press/speeches… 1/4 
Andrea Enria: European banking supervision helped banks to repair their balance sheets more quickly after the crisis. Banks now have much stronger capital and liquidity positions. 2/4
Andrea Enria: We still need to erect the third pillar of the banking union: European deposit insurance. Depositors must be sure that their money is well protected, no matter whether it is deposited with a bank in France, Italy, Greece or Germany. 3/4
[THREAD] In his speech at the #ECBForum, President Mario Draghi spoke about the past twenty years of the ECB’s monetary policy and the outlook for the future. #Euroat20 1/11
The first decade of Monetary Union was characterised by calm macroeconomic conditions, with limited volatility and steady economic growth. The second decade, however, has seen profound shifts in the prevailing environment. Our monetary policy strategy has had to adapt. 2/11
We responded in three main ways: by clarifying the symmetry of our aim, by laying out the tools we would use to counteract downside inflation risks and by operationalising our reaction function by launching a series of new instruments. 3/11
