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Monetary policy in the Eurozone
- Why is it that despite the privileged role the ECB gives to the growth rate of money (M3), this variable has been disregarded most of the time by the ECB?
- Could the growth rate of M3 be used as a warning signal of future financial crisis?
- Is inflation always and everywhere a monetary phenomenon?
- How can the ECB set up a system that will warn of future financial crises?
- What is the difference between explicit inflation targeting and the ECB’s ‘two-pillar strategy’? Could explicit inflation targeting be a good alternative to the two-pillar strategy of the ECB?
- How would you define a new ‘two-pillar’ strategy for the ECB that takes into account the objective of price stability?
- What is the difference between tender procedures with variable and fixed rates? Why did the ECB switch from fixed-rate tenders to variable-rate tenders until the start of the financial crisis?
- Why did the ECB return to fixed rate tenders since the start of the financial crisis?
- How did the ECB deal with potential transfers of risks between countries that resulted from its QE programme?
- Has the ECB transgressed its statutes by engaging in large-scale purchases of government bonds?
- How effective has the ECB’s ‘quantitative easing’ been in stimulating output and raising inflation?