Bursting the Bubble

Tag Archives: European Central Bank

The Politics of the ECB

19 December 2016 | by

The European Central Bank (ECB) is the central bank for the euro and administers the monetary policy of the eurozone, which consists of 19 EU member states and is one of the largest currency areas in the world. It is one of the world’s most important central banks and is one of the seven institutions […]

Greece: Eurozone and IMF clash over debt relief

7 June 2016 | by

On one level, the recurring Greek crises fits the idea from Karl Marx of history repeating itself, first as tragedy, then as farce. Greece came close to a eurozone exit last summer. While it will probably come close again this year, it is unlikely to leave. The eurozone, Greece and International Monetary Fund (IMF) stood at […]

Dovish ECB does not deliver what was expected

9 December 2015 | by

When a country joins a monetary union, it gives up its monetary policy stance that is tailored to its needs, i.e. the level of interest rates and money supply that is appropriate for its economy. The resulting common policy is a one-size-fits-all policy. Booming regions, with high inflation, have the lowest interest rate in the […]

The Future of the Banking Union: ECB’s supervisory role challenged at EU’s court

9 April 2015 | by

While our eyes are currently firmly fixed on Greece, which is often perceived as the most acute threat to the Eurozone’s future, in the meantime the stability of the Europe’s monetary union is being undermined by the back door. That is because the newly established supervisory role for the European Central Bank (ECB) has recently […]