ECB’s Schnabel shares four monetary-policy lessons as board term ends
Briefing by News4U · First published
Today Isabel Schnabel said in a European Central Bank speech that, as she reaches the end of her journey at the ECB, recent years of inflation shocks and rapid tightening taught four monetary-policy lessons. Speaking at the ECB Conference on Money Markets in Frankfurt, the outgoing Executive Board member said central banks should keep room for manoeuvre by avoiding rigid commitments, respond to how shocks affect the inflation outlook rather than to the shock’s label, protect monetary dominance through strong fiscal and regulatory frameworks, and implement policy efficiently with a balance sheet no larger than necessary. She framed the remarks as personal reflections on conducting policy in a less predictable world. [1]
Sources
- Navigating stormy waters: reflections on monetary policy
European Central Bank · · Excerpt