More from @ecb

European Central Bank

@ecb

27 Nov

@Expresso

(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

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

@ecb

26 Nov

(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

Read 5 tweets

European Central Bank

@ecb

20 Nov

@Lagarde

(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

@ecb

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

@ecb

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