PUBLICATIONS | Policy Briefs
15 March 2018
Christophe Blot, Jérôme Creel, Paul Hubert
Low inflation despite economic recovery has given rise to the puzzle of “missing inflation”. Yet there would be no puzzle if the recovery is incomplete. While GDP is on the rise, some slack may still be present in some countries of the euro area...
20 December 2017
Christophe Blot, Jérôme Creel, Paul Hubert
The predictability of the exit from balance sheet policies is essential to ensure that financial markets can digest the extra supply of securities that they will face when the ECB will taper.
The question about what the central banks' balance sheets should look like in the “new normal” come down to the objectives of central banking and whether monetary policy should aim to maintain economic and financial stability.
The ECB should consider using balance sheet policies...