Monetary Dialogue Briefing Papers: December 2011

The latest collection of briefing papers for the European Parliament’s Monetary Dialogue with the ECB are available here (click on 19.12.2011). Five papers (including one by me) discusses issues related to ratings agencies, prompted by the recent package of regulations proposed by the European Commission.  Three other papers discuss the ongoing Euro crisis.

Monetary Dialogue Briefing Papers: June 2011

The latest collection of briefing papers for the European Parliament’s Monetary Dialogue with the ECB are available here (click on 30.6.2011). One set of papers (including one by me) discusses the prospects for monetary policy in light of the wide variations in the economic cycle across different Euro area economies. The other set of papers discuss issues related to restructuring Greek debt.

I’ll repeat my final couple of paragraphs here. These were written prior to the comments discussed here

The relationship between the ECB and the peripheral economies has become extremely complex. However, it is clear that ECB officials have regularly used the implicit threat that they can withdraw their support for peripheral banking systems, or else continue to provide funds to “persistent bidders” at interest rates that are perhaps considerably higher than are charged to other countries, as a way to obtain actions they deem necessary.

In relation to Greece, ECB officials have been using the threat of the withdrawal of the eligibility of Greek sovereign debt as collateral for open market operations to put forward their argument against any debt restructuring. In the case of Ireland, it is known that Irish government officials have requested that assurances be provided that the ECB will continue to provide sufficient liquidity to Irish banks over the next few years, perhaps via a special medium-term facility. However, no such assurances have been provided. And without greater clarity on the timeframe for repaying their loans to the ECB, it will remain impossible for even recapitalised Irish banks to obtain market funding.

The ECB’s strategy of threatening peripheral banking systems (and the regular coverage this receives in the media) has become one of the destabilising factors that have contributed to worsening the current crisis. It is time for this poorly-thought-out strategy to cease. The ECB’s obligations under the European Treaty mean that it cannot help peripheral countries via keeping interest rates low for the next few years. But it can continue to act as a lender of last resort to the banks in these countries in a way that reassures (rather than worries) financial markets.

To my mind, the latest “anonymous ECB official” comments represent a new lowpoint for that particular institution.

Monetary Dialogue Briefing Papers: March 2011

The latest collection of briefing papers for the European Parliament’s Monetary Dialogue with the ECB are available here. One set of papers (including one by me) discuss bank and sovereign debt resolutions (this paper is the source of my comments here on senior bank bonds). The other set discuss the issue of Eurobonds.

Monetary Dialogue Briefing Papers: November 2010

The latest collection of briefing papers for the European Parliament’s Monetary Dialogue with the ECB are available here (click on 30.11.2010). One set of papers (including one by me) discusses a package of proposals put forward by the European Commission involving changes to the Stability and Growth Pact. The other papers discuss the issue of so-called currency wars.

Monetary Dialogue Briefing Papers: September 2010

The latest collection of briefing papers for the European Parliament’s Monetary Dialogue with the ECB are available here (click on 27.09.2010). They focus on a range of interesting questions provoked by the sovereign debt crisis, such as what follows after the current bailout funds expire in 3 years and how to reform and implement the Stability and Growth Pact.

European Parliament Briefing Papers: June 2010

The latest Monetary Dialogue briefing papers for the European Parliament’s Committee on Economic and Monetary Affairs are available here (click on 21.6.10). These papers are provided to help the MEPs on the committee prepare for their June 21 meeting with President Trichet, which promises to be an interesting one. My paper is titled “The Euro, the ECB and the Sovereign Debt Crisis”.  All the papers focus on different aspects of the European sovereign debt issue.

European Parliament Papers on Deficits and Global Imbalances

Here‘s a link to the latest set of briefing papers for the European Parliament’s Economic and Monetary Affairs Committee. One set of papers (including one by me) focuses on global imbalances and the role they played in the financial crisis. The other set of papers focuses on European fiscal issues. These papers include a summary by Daniel Gros (CEPS) of his proposal with Thomas Mayer (Chief Economist of Deutsche Bank) for a European Monetary Fund.

These briefing papers are provided to MEPs on the committee prior to a meeting they will have with ECB President Trichet on March 22nd at which these and other issues will be discussed.

Paper on Systemic Risk

Here‘s a paper on “Containing Systemic Risk” which I submitted to the European Parliament’s Monetary and Economic Affairs Committee in relation to its Monetary Dialogue with ECB President Trichet.

I’m one of a panel of “experts” that briefs the committee. Here‘s a link to the page that contains all the expert papers for this year. Click on 7.12.09 and you’ll see papers by other economists on the topic of systemic risk as well as some interesting papers on the Monetary Exit Strategies.

G20 and Reforming Banking Regulation

The communiqué for the latest G20 summit is available here. It contains lots of the usual waffle about co-operation on this that and the other, but I think the most important element of the discussions relates to the reform of banking regulation.

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