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Begin New Search Topic Central Bank Publishing Institution Center for Social and Economic Research - CASE

1. Does Low Inflation Pose a Risk to Economic Growth and Central Banks Reputation?

Author:
Marek Dabrowski
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they should revise the inflation target downwards and publicly explain the rationale for such a move. Risks to the independence of central banks come from their additional mandates (beyond price stability) and populist politics.
Topic:
Economic growth, Inflation, and Central Bank
Political Geography:
Global Focus

2. Increasing the International Role of the Euro: A Long Way to Go

Author:
Marek Dabrowski
Publication Date:
08-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The euro is the second most important global currency after the US dollar. However, its international role has not increased since its inception in 1999. The private sector prefers using the US dollar rather than the euro because the financial market for US dollar-denominated assets is larger and deeper; network externalities and inertia also play a role. Increasing the attractiveness of the euro outside the euro area requires, among others, a proactive role for the European Central Bank and completing the Banking Union and Capital Market Union.
Topic:
European Union, Economic growth, Central Bank, Currency, and Trade
Political Geography:
Europe