The European Central Bank Managing Conflicting Policy Interests G e - - PowerPoint PPT Presentation

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The European Central Bank Managing Conflicting Policy Interests G e - - PowerPoint PPT Presentation

Nov 13, 2023 483 likes •778 views

U n i v e r s i t e P a r i s 1 P a n t h o n - S o r b o n n e P a r i s , 3 J u l y 2 0 1 7 The European Central Bank Managing Conflicting Policy Interests G e o r g e s U g e u x A d j u n c t P r o f e s s o r C o l u m b i a L

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The European Central Bank

Managing Conflicting Policy Interests

U n i v e r s i t e P a r i s 1 P a n t h é o n - S o r b o n n e P a r i s , 3 J u l y 2 0 1 7

G e o r g e s U g e u x A d j u n c t P r o f e s s o r C o l u m b i a L a w S c h o o l

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  • 3. ECB, national central banks and their policy agendas
  • 1. Central Banking 101: monetary policy
  • 4. Sovereign debt crises
  • 2. The ECB: a uniquely structured central bank
  • 5. Negative interest rates
  • 6. Open Market Operations and Quantitative Easing
  • 7. The regulatory structure and the European Banking Union
  • 8. Bank intervention
  • 9. The scope of the ECB: the ever growing balance sheet
  • 10. Monetary and Fiscal Policies without a European Treasury
  • 11. Proposals for a reform agenda of the ECB
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The ECB

  • 1. Central Banking 101: Monetary policy
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The ECB

  • 1. Central Banking 101: Monetary policy: the ECB

▪ The European Central Bank and the national central banks together constitute the Eurosystem, the central banking system of the euro area. The main objective of the Eurosystem is to maintain price stability: safeguarding the value of the euro. ▪ The European Central Bank is responsible for the prudential supervision of credit institutions located in the euro area and participating non-euro area Member States, within the Single Supervisory Mechanism, which also comprises the national competent authorities. It thereby contributes to the safety and soundness of the banking system and the stability of the financial system within the EU and each participating Member State. ▪ We at the European Central Bank are committed to performing all our tasks effectively. In so doing, we strive for the highest level of integrity, competence, efficiency and accountability. We respect the separation between our monetary policy and supervisory tasks. In performing our tasks we are transparent while fully observing the applicable confidentiality requirements.

Source: https://www.ecb.europa.eu/press/tvservices/webcast/html/webcast_pc.en.html

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The ECB

  • 1. Central Banking 101: Monetary policy: the Eurosystem

▪ The European System of Central Banks (ESCB) established under the Treaty on European Union (TEU) is made up of the European Central Bank (ECB) and the national central banks of all the Member States of the European Union (EU), regardless of whether or not they have adopted the euro. ▪ The Eurosystem, in turn, groups together the ECB and the national central banks of the Member States whose currency is the euro. ▪ The ECB constitutes the core of the Eurosystem and the ESCB. It is responsible for implementing the euro area’s monetary policy. ▪ NCBs of the euro area perform the duties entrusted to them according to the regulations established by the ECB. NCBs can also perform other duties outside the Eurosystem independently, providing the governing council does not consider that these activities interfere with the tasks and objectives of the Eurosystem. ▪ The Eurosystem is responsible for: ▪ defining and implementing monetary policy ▪ conducting foreign exchange operations ▪ holding and managing the euro area’s foreign currency reserves ▪ promoting the smooth operation of payment systems ▪ ECB carries out specific tasks in the areas of banking supervision, banknotes, statistics, macro prudential policy and financial stability as well as international and European cooperation

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The ECB

  • 1. Central Banking 101: Main functions

The Eurosystem comprises the ECB and 19 NCBs

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The ECB

  • 1. Central Banking 101: Monetary policy transmission mechanism
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  • 2. The ECB: A uniquely structured central bank
  • ECB: a central bank of 19 or 28 member states
  • Eurozone: ECB as the central bank of the Eurozone monetary union
  • United Kingdom: the Brexit dilemma

The ECB

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  • 3. ECB, national central banks and their policy agendas

The ECB

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  • 4. The European debt crises: the indebtedness

The Eurozone

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  • 4. The European debt crises: the Italian risk

The Eurozone

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  • 4. The European debt crises: the Greek saga and the troika

The Eurozone

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  • 5. Negative interest rates

The ECB in action: Key issues and Challenges

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  • 6. Open Market Operations and Quantitative Easing

The ECB in action: Key issues and Challenges

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  • 6. Open Market Operations and Quantitative Easing

The ECB in action: Key issues and Challenges

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  • 6. Open Market Operations and Quantitative Easing

The ECB in action: Key issues and Challenges

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  • 7. The regulatory structure and the European Banking Union

The ECB in action: Key issues and Challenges

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  • 7. The regulatory structure and the European Banking Union

The ECB in action: Key issues and Challenges

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  • 7. The regulatory structure and the European Banking Union

The ECB in action: Key issues and Challenges

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  • 8. Bank intervention

The ECB in action: Key issues and Challenges

Italian banking crisis: Banca Monte dei Paschi di Siena

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  • 8. Bank intervention

The ECB in action: Key issues and Challenges

Spain Banco Popular

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  • 8. Bank intervention: the failure of the European Banking Union

The ECB in action: Key issues and Challenges Why Troubles at a Midsize Italian Bank Worry the E.U. New York Times

The European banking union falls short in Italy The Financial Times

Draghi: il bail-in non ha previsto tutti i casi

Roma ignora las normas europeas

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  • 9. The scope of the ECB: the ever growing balance sheet

The ECB project: multiple mandates and conflicts of interest

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  • 9. The scope of the ECB: the ever growing balance sheet

The ECB project: multiple mandates and conflicts of interest

The ECB balance sheet

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  • 10. Monetary and Fiscal Policies without a European Treasury

The ECB project: multiple mandates and conflicts of interest

The European budget without European taxes The “stretched” mission of the ECB Financial stability? A Bermuda Triangle

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  • 11. Proposals for a reform agenda of the ECB

The ECB project: multiple mandates and conflicts of interest

▪ Stick to Monetary policy and force the EU to deal with fiscal policies and reforms ▪ Balance sheet reduction: matching the Fed? ▪ Transparency and its limits ▪ Autonomy vs independence ▪ Governance structure ▪ Mechanism to deal with conflicts of policies

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  • 11. Proposals for a reform agenda of the ECB

The ECB project: multiple mandates and conflicts of interest