You’ve heard all about the ‘household analogy’ in fiscal policy

Here comes the ‘bank analogy’ in monetary policy

This one has been coming for a long time and I’m all the more glad for it to finally see the light of day 😊

Out open access @NPEjournal 🧵

tandfonline.com/doi/full/10.10… I introduce the central bank–commercial bank analogy as a concept in itself

And as a case of the wider theoretical problem of ‘folk ideas’—a contribution to the burgeoning literature on the power of ideas

All of which illustrated with the help of the #ECB

Here goes:
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We hear more and more that one way to defuse the #Karlsruhe–#Luxembourg–#Frankfurt conflict is to travel via #Berlin:

Let @bundesbank be more *accountable* to @Bundestag
(reuters.com/article/us-ecb…)

Here's a few things we know about the promises and pitfalls of that strategy

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https://twitter.com/lucasguttenberg/status/1258329445284433920

The ECB has a Monetary Dialogue with @EP_Economics in #Brussels & it answers written questions by MEPs

Many see the Dialogue as a talking shop, but it does offer a template

I've been cautiously optimistic about it in the last crisis(as have MEPs)...

https://twitter.com/SvenHilgers/status/1258438945492414464

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