Monetary policy in the time of Covid-19, or how uncertainty is here to stay

Maria Demertzis and Marta Domínguez-Jiménez

Politica economica, 2021, issue 3, 313-338

Abstract: The COVID-19 crisis has compounded the uncertainty that has come to characterise the European economy. We explore how this uncertainty manifests itself in terms of European Central Bank decision-making and the long-run challenges the ECB faces. Confidence in ECB actions will come from the contingency scenarios it considers and communicates on, and from the adoption of potential policies for a wide range of such scenarios. Greater clarity around the ECB’s inflation target and surrounding tolerance bands would also be beneficial

Keywords: monetary policy; Central Banking; interest rates; uncertainty (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:mul:je8794:doi:10.1429/103966:y:2021:i:3:p:313-338

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