| Author (Person) | Springford, John |
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| Publisher | Centre for European Reform (CER) |
| Series Title | CER Insight |
| Publication Date | June 2022 |
| Content Type | Research Paper |
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Summary: The proposed macroeconomic framework sketched in this paper would allow the European Central Bank to raise interest rates to deal with inflation while acting to prevent financial problems in southern Europe through its anti-fragmentation tool. The bank could tighten or loosen monetary policy in a way that it judged would fulfil its inflation mandate, while preventing liquidity problems in some member-states from plunging the eurozone as a whole into crisis. Member-states’ solvency would be achieved by having credible fiscal targets that are founded upon agreement by national governments and the European Commission. And the Commission could police those agreements with a permanent green investment fund that would be disbursed if member-states stuck to them. That fund would also help the EU to achieve emissions targets, energy independence from Russia, and a more secure EU. |
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| Source Link |
Link to Main Source
https://www.cer.eu/insights/new-eu-fiscal-regime-could-make-ecb-truly-independent
Alternative sources
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| Related Links |
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Climate Change, Fiscal Policy |
| Keywords | EU Fiscal Rules |
| International Organisations | European Central Bank (ECB), European Union [EU] |
