Legislative acts on targeted longer-term refinancing operations, cross-border distribution of investment funds, and the position of the German government on the financial transaction tax: a selection of financial regulatory developments from this month.
Alexander Ludwig: Central banks are held responsible for the continuous low-interest rate environment. However, there are many indications that the demographic trend is lowering natural interest rate.
Alexander Ludwig: The ECB has reached a limit with its monetary policy. Other policy responses are needed: an expansion of fiscal measures for more investment in infrastructure and education.
Ignazio Angeloni: According to some, the ECB can learn from the Fed on how to deal with dissent. The US system, however, is not a reference Europe can easily conform to.
The ruling on the European Central Bank’s quantitative easing appears to open up an irremediable conflict at the heart of the euro area, with potentially fatal consequences for the currency and its central bank. It may turn out differently.