Reports of Professor Elisabeth Krecké
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Is there a future for the EU’s banking union?
The eurozone’s banking industry barely survived the 2008-2012 financial crisis. A common regulatory and supervisory system, a banking union, was meant to make the industry more resilient. A decade later, this “single rule book” remains incomplete as transferring responsibility for banking policy from the national to supranational level has met ...
The EU’s proposed regulation of markets in crypto assets
Decentralized finance is poised to revolutionize both blockchain technology and the traditional financial system. In the name of seizing the crypto opportunity, the European Commission has set out an ambitious regulatory plan. But complex structures and the pursuit of too many goals could throttle innovation.
Recovery economics: Optimism or overheating?
Economists Larry Summers and Olivier Blanchard have long urged governments to engage in more stimulus but now have become critical of President Biden's spending plans. Though they are right that economic overheating and higher interest rates would be disastrous, at least the U.S. has an optimistic outlook – something that ...
The ECB’s new rush toward the digital euro
The European Central Bank is gearing up to introduce a “digital euro” that would circulate alongside regular currency. Doing so would give the ECB more flexibility in monetary policy and consumers greater access to money. But it would also upend the current system, giving the ECB huge powers of surveillance ...
The end of central banking as we know it
The new Executive Board of the European Central Bank has shown remarkable unity under President Christine Lagarde’s leadership, even during the bitter trials of the 2020 pandemic. However, the team will face challenges. With respected economists working for her, the president – a lawyer and politician – could find herself ...
New Opportunities 2021: The ECB and bringing financial markets down to earth
The Covid-19 pandemic has capped a decade of economic crises that the European Central Bank has had to deal with. The bank’s tools to keep countries’ finances afloat and investors’ confidence solid have been unprecedented. Weaning them off low interest rates, financial injections and high debt will be its next ...
ECB: Pushing banks too far?
After the last economic crisis, the European Central Bank put in place strict rules to ensure banks were in a strong financial position. Now, to counter the pandemic's effects, authorities are pushing banks to take more risks in lending to households and businesses. But banks see a rough road ahead, ...
Is there a Covid-19 inflation puzzle?
The world’s governments have issued massive waves of debt in response to the pandemic’s economic damage. Public deficits have exploded and central banks are taking extraordinary measures. Will there be inflation, or deflation in the post-Covid fiscal future? The crisis has produced a huge negative supply shock, but the shock ...
