Objectives of the session
According to some observers, the ECB seems to face with a quandary: tightening monetary policy – dampening demand by reducing the money overhang that requires an ending of QE and raising gradually interest rates – that would create challenges for highly indebted euro area members -, or tolerate rising inflation and stick to its mandate, which would increase inflation dynamics and exchange rate depreciation leading to further increase inflationary pressures with negative consequences for consumption and investment.
The objective of this session is to assess the role of monetary policy in the EU context and to discuss the priorities and the calendar regarding the normalization of the ECB monetary policy.
Main questions to be addressed
- Getting out of the pandemic and in the EU context of rising inflation, what should be the role of monetary policy in Europe?
- What should be the priorities and the calendar regarding the normalisation of the ECB monetary policy?