Euro area policy mix: From horizontal to vertical coordination

Marco Buti, Marcello Messori Marco Buti and Marcello Messori argue that the forceful policy response of the EU and its member states to the COVID Pandemic, and in particular the move to a more structured ‘vertical’ coordination between national and EU fiscal policies, has led to a more balanced euro area policy mix, which has allowed […]

ECB monetary policy and catch-up inflation

Lucile Crumpton, Ethan Ilzetzki  In July, the ECB issued its first Strategic Review since 2003. The latest CfM-CEPR survey investigates one component of the announced policy shift: the new definition of price stability. Most members of the panel of experts on the European economy support the ECB explicitly allowing inflation to exceed its target for extended periods to make up for below-target inflation […]