European Central Bank
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GIS Dossier: Monetary policy stood on its head
Unconventional monetary policies saved many financial institutions in the U.S. and Europe after the financial crisis. However, near-zero to negative interest rates and central banks’ massive debt-purchasing programs, which pumped trillions of dollars and euros into economies, failed to restore growth and have had potent, negative and lasting side-effects. Relaxing the corset of regulations while restoring the market players’ responsibility would have worked better.
Low interest rates: How long will savers be penalized?
Low, near-zero and negative interest rates around the world are depriving savers of potential earnings. Just a couple of years ago, it seemed as if a normalization of interest rates was on the horizon. Now, however, economic and political realities portend a “low-for-long” scenario. In fact, central bankers – in ...
The euro and the German constitution
Two legal challenges to the EU central bank’s most controversial policies have been working their way through Germany’s Federal Court of Justice, the country’s supreme court equivalent. In one of the cases, the justices in Karlsruhe already ruled that the authority of the EU Banking Union ought to be limited. ...
After the Great Fear: The EU’s Sibiu agenda
EU leaders heaved a sigh of relief after May’s European Parliament elections when the much-feared populist wave failed to rock the boat. Yet at most, they have gained a little time. Judging by the tone of the informal summit held in Sibiu, Romania, the EU’s new leadership will favor old ...
Portugal: The economy is Costa’s next big test
Portuguese Prime Minister Antonio Costa has helped keep populism in check by “taming” radical leftist parties and including them in his governing “contraption” coalition. He has avoided austerity, making him popular and likely to win October’s elections. After that, he will need to solidify Portugal’s recovery with deeper economic reforms. ...
