Share this page!

European Central Bank Profile picture
Twitter logo
26 Nov, 5 tweets, 2 min read
(THREAD) Chief Economist Philip R. Lane reflects on the role of monetary policy in a pandemic.

Read the speech ecb.europa.eu/press/key/date… 1/5
Lane: While the recent news on vaccines is very welcome and reduces the likelihood of the most severe scenarios, the current surge in infections and the re-imposition of containment measures serve as warning signals that the recovery will still be long and fraught with risks 2/5
Lane: The impact of the pandemic varies across countries while the services sector is clearly bearing the brunt of the pandemic. Fiscal policy is in the best position to differentiate and channel economic support to where it is needed most 3/5
Lane: Analysis by ECB staff suggests that without our monetary policy measures euro area output would be 1.3 percentage points lower and the annual inflation rate would be 0.8 percentage points lower by 2022 in cumulative terms 4/5
Lane: Ensuring favourable financing conditions to support the economic recovery and to counteract the negative impact of the pandemic on the projected inflation path is essential. We will recalibrate our instruments, as appropriate, to respond to the unfolding situation 5/5

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with European Central Bank

European Central Bank Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ecb

European Central Bank Profile picture
27 Nov
(THREAD) Technological innovation opens up opportunities and risks, says Executive Board member Fabio Panetta at the @bundesbank's conference “Future of Payments in Europe“. Our strategy is to empower Europeans with efficient, inclusive and secure payments in the digital age 1/5 Image
Panetta: Big tech and stablecoins could disrupt the European financial system. While they could offer convenient and efficient payment solutions, they risk endangering competition, privacy, financial stability and even monetary sovereignty 2/5
Panetta: We are implementing a comprehensive policy to ensure that citizens’ payment needs are met, while safeguarding the integrity of the payment system and financial stability. We are also promoting safe, pan-European instant payments 3/5
Read 5 tweets
European Central Bank Profile picture
27 Nov
(THREAD) We cannot afford to be too optimistic, says Executive Board member Fabio Panetta to @expresso. There should not be any doubt about our commitment to bring inflation back to our aim or about the continuity of our policies even when the recovery gets underway 1/4 Image
Panetta: With the second wave, the starting point for the inflation outlook is now lower than a few months ago. Uncertainty might leave scars even after the economy recovers. We cannot hesitate to take decisive measures to avoid a disanchoring of inflation expectations 2/4
Panetta: We have the firepower, we have instruments that we can recalibrate, and we’re going to do so. Fiscal policy is also an essential element to respond to the crisis and to support our stabilisation goals 3/4
Read 4 tweets
European Central Bank Profile picture
20 Nov
(THREAD) The pandemic has rightly focused minds on the here and now, President Christine @Lagarde says in a speech at the European Banking Congress. Yet it also provides the opportunity to reassess how we will organise our economy in the future ecb.europa.eu/press/key/date… 1/4
Lagarde: Faster digitalisation offers many benefits. It could lead to a less resource-intensive economy, give a jolt to productivity and democratise access to essential services. But technological transitions have not always been smooth and can be a source of anxiety 2/4
Lagarde: If Europe is to be successful in sustaining growth, it will require progress along a number of dimensions, in particular in harnessing the opportunities offered by new technologies. This will require a clear focus on innovation and education 3/4
Read 4 tweets
European Central Bank Profile picture
11 Nov
(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
Read 6 tweets
European Central Bank Profile picture
10 Nov
The coronavirus pandemic has lowered potential output in the euro area. Labour, capital, and total factor productivity were all affected. Read more in the #EconomicBulletin [1/4]

ecb.europa.eu/pub/economic-b…
Estimates of potential output are uncertain and will change as the situation evolves and as the pandemic’s economic impact becomes clearer. Yet, it is already evident that potential output is likely down less than GDP – indicating a negative output gap [2/4]
Digitalisation is likely to have accelerated in many firms across different sectors in response to the pandemic. This positive development may enhance productivity growth in the medium term [3/4]
Read 4 tweets
European Central Bank Profile picture
9 Nov
Economic Bulletin Article: New pension fund statistics
ecb.europa.eu/pub/economic-b…
Economic Bulletin: Euro area pension fund assets have almost doubled over the past two decades
Economic Bulletin: Euro area pension funds mainly invest in investment fund shares and debt securities
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

Like this author's thread?

Get email notifications when new thread is out from this Author!

Check out other threads from this Author!

Read all threads by @ecb