ACCOUNTABILITY
21 June 2021
Hearing at the European Parliament
President Christine Lagarde spoke before the European Parliament’s Committee on Economic and Monetary Affairs and answered questions from its members.
Introductory statement
ECONOMIC BULLETIN
24 June 2021
Economic Bulletin out now
This publication presents the economic and monetary information which forms the basis for the Governing Council’s policy decisions.
It is released eight times a year, two weeks after each monetary policy meeting.
Economic Bulletin Issue 4, 2021
YOUTH INITIATIVES
18 June 2021
#EuropeDay quiz competition winners
Congratulations to the ten winners of our ECB-QuizDuel competition, who proved they are true euro experts! Missed the competition? Learn more about the correct answers to some of the quiz questions.
More on the quiz- 25 June 2021
- OTHER GOVERNING COUNCIL DECISIONEnglishOTHER LANGUAGES (22) +
- 25 June 2021
- MONETARY DEVELOPMENTS IN THE EURO AREAAnnexes
- 25 June 2021
- MONETARY DEVELOPMENTS IN THE EURO AREA
- 24 June 2021
- PRESS RELEASE
- 22 June 2021
- WEEKLY FINANCIAL STATEMENTEnglishOTHER LANGUAGES (22) +Annexes
- 22 June 2021
- WEEKLY FINANCIAL STATEMENT - COMMENTARY
- 21 June 2021
- EURO AREA PENSION FUND STATISTICSAnnexes
- 21 June 2021
- EURO AREA PENSION FUND STATISTICS
- 24 June 2021
- Guest lecture by Isabel Schnabel, Member of the Executive Board of the ECB, at the School of Economics and Management, University of Cyprus
- 22 June 2021
- Vortrag von Isabel Schnabel, Mitglied des Direktoriums der EZB, beim Rotary Club (Bonn-Museumsmeile)
- 22 June 2021
- Lecture by Philip R. Lane, Member of the Executive Board of the ECB, at the Athens University of Economic and Business
- 21 June 2021
- Introductory statement by Christine Lagarde, President of the ECB, at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament (by videoconference)
- 16 June 2021
- Keynote speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the ECB-EBRD joint conference on “Emerging climate-related risk supervision and implications for financial institutions”
- 20 June 2021
- Interview with Fabio Panetta, Member of the Executive Board of the ECB, conducted by Martin Arnold on 14 June 2021
- 17 June 2021
- Interview with Philip R. Lane, Member of the Executive Board of the ECB, conducted by Paul Gordon on 17 June 2021
- 14 June 2021
- Interview with Christine Lagarde, President of the ECB, conducted by Johanna Treeck and Florian Eder on 11 June 2021 in Frankfurt
- 28 May 2021
- Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Balazs Koranyi, Frank Siebelt and Francesco Canepa
- 26 May 2021
- Interview with Fabio Panetta, Member of the Executive Board of the ECB, conducted by Jun Ishikawa
- 11 May 2021
- Blog post by Fabio Panetta, Member of the Executive Board of the ECBDetails
- Summary
- Climate change and sustainability are global challenges that require global solutions, especially in the financial sector, writes Executive Board member Fabio Panetta. We need international disclosure standards and principles to categorise sustainable activities.
- 1 April 2021
- Blog post by Philip R. Lane, Member of the Executive Board of the ECBDetails
- Summary
- The recent volatility of inflation can largely be attributed to the nature of the pandemic shock, writes Chief Economist Philip R. Lane. The increase in inflation during early 2021 does not constitute the basis for a sustained shift in inflation dynamics.
- 25 March 2021
- Blog post by Fabio Panetta, Member of the Executive Board of the ECB, and Ulrich Bindseil, ECB Director General Market Infrastructure and PaymentsDetails
- Summary
- At the ECB we are committed to understanding people’s needs and ensuring the digital euro would be widely accepted, writes Executive Board member Fabio Panetta with Ulrich Bindseil in The ECB Blog.
- 22 March 2021
- Blog post by Christine Lagarde, President of the ECBDetails
- Summary
- Our pandemic emergency purchase programme (PEPP) has provided crucial support to euro area citizens since its launch a year ago, writes President Christine Lagarde in The ECB Blog. The PEPP has been, and remains, at the core of our pandemic policy response.
- 18 March 2021
- Blog post by Luis de Guindos, Vice-President of the ECBDetails
- Summary
- The damage caused by more frequent and severe natural disasters far exceeds the costs of transitioning to a greener economy, writes Vice-President Luis de Guindos in his ECB Blog post on our first climate stress test for banks and companies.
- 24 June 2021
- ECONOMIC BULLETIN
- 24 June 2021
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 4, 2021Details
- Abstract
- This box describes the ECB’s monetary policy operations during the first and second maintenance periods of 2021, from 27 January to 27 April.
- JEL Code
- E40 : Macroeconomics and Monetary Economics→Money and Interest Rates→General
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
- 24 June 2021
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 4, 2021Details
- Abstract
- This box documents the misalignment between the surge in global demand for semiconductors and their limited global supply. The semiconductor chip shortage poses constraints on euro area manufacturers, particularly in industries relying on semiconductors, such as the computer, electronic, electrical equipment and automotive industries. So far, there is only limited evidence regarding the effects of the shortage of semiconductors on euro area price pressures.
- JEL Code
- F10 : International Economics→Trade→General
D24 : Microeconomics→Production and Organizations→Production, Cost, Capital, Capital, Total Factor, and Multifactor Productivity, Capacity
E23 : Macroeconomics and Monetary Economics→Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy→Production
E31 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Price Level, Inflation, Deflation
- 24 June 2021
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 4, 2021Details
- Abstract
- This box examines the fiscal policy developments outlined in the 2021 stability programmes.
- JEL Code
- E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy
H6 : Public Economics→National Budget, Deficit, and Debt
- 24 June 2021
- RESEARCH BULLETIN - No. 85Details
- Abstract
- A low-inflation trap is a situation where both actual and expected inflation are firmly below the central bank’s target and nominal interest rates are close to or at their lower bound. The concept is often used to characterise Japan’s quarter-century of very low, and often negative, inflation. More recently, persistent inflation shortfalls across the industrialised world have raised concerns that other jurisdictions, too, may be on the verge of getting caught in a Japanese-style low-inflation trap. Our new research shows how fiscal policy can help guard economies against this fate.
- JEL Code
- E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E61 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Policy Objectives, Policy Designs and Consistency, Policy Coordination
E62 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→Fiscal Policy
- 23 June 2021
- FAQ
- 23 June 2021
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 4, 2021Details
- Abstract
- European governments responded to the pandemic by deploying large fiscal packages with the aim of supporting households, workers and firms. The October 2020-March 2021 SAFE shows that around two-thirds of large firms and SMEs surveyed made use of government policy support measures. Most firms used these schemes, particularly in the form of wage support measures, tax cuts and tax moratoria, to cover their immediate and short-term liquidity needs. Firms also indicated that government measures either currently in place or planned would make it easier for them to meet their debt obligations in the next two years. This demonstrates how government policies have been key to easing the liquidity needs of firms in the short and medium term following the outbreak of the pandemic.
- JEL Code
- D22 : Microeconomics→Production and Organizations→Firm Behavior: Empirical Analysis
H32 : Public Economics→Fiscal Policies and Behavior of Economic Agents→Firm
- 23 June 2021
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 4, 2021Details
- Abstract
- This box documents the impact of the coronavirus (COVID-19) crisis on the euro area labour market for men and women. Based on available data up to the end of 2020, the COVID-19 crisis led to a decline in the labour force, a fall in employment and an increase in unemployment, with different developments for men and women across time. Preliminary evidence suggests that workers from both genders benefited from the widespread use of job retention schemes. Still, the decline in average hours worked was somewhat more pronounced for men than for women. The reasons behind the decline in average hours worked differed across gender, with the decline in average hours worked for men driven in part by a decrease in contractual hours and for both men and women by ad hoc reductions in hours worked. This, in turn, increased the gap between the actual hours worked and the contractual hours of work. These developments can also be attributed to the asymmetric sectoral impact of the COVID-19 crisis. Overall, the available evidence suggests that both men and women were strongly affected by the impact of the COVID-19 crisis on the euro area labour market.
- JEL Code
- E24 : Macroeconomics and Monetary Economics→Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy→Employment, Unemployment, Wages, Intergenerational Income Distribution, Aggregate Human Capital
J11 : Labor and Demographic Economics→Demographic Economics→Demographic Trends, Macroeconomic Effects, and Forecasts
J16 : Labor and Demographic Economics→Demographic Economics→Economics of Gender, Non-labor Discrimination
J21 : Labor and Demographic Economics→Demand and Supply of Labor→Labor Force and Employment, Size, and Structure
- 22 June 2021
- WORKING PAPER SERIES - No. 2571Details
- Abstract
- Labor productivity is more procyclical in OECD countries with lower employment volatility. To capture this new stylized fact, we propose a business cycle model with employment adjustment costs, variable hours and labor effort. We show that, in our model with variable effort, greater labor market frictions are associated with procyclical labor productivity as well as stable employment. In contrast, the constant-effort model fails to replicate the observed cross-country pattern in the data. By implication, labor market deregulation has a greater effect on the cyclicality of labor productivity and on the relative volatility of employment when effort can vary.
- JEL Code
- E30 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→General
E50 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→General
E60 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook→General
- 22 June 2021
- ECONOMIC BULLETIN - ARTICLEEconomic Bulletin Issue 4, 2021Details
- Abstract
- The globalisation of inflation hypothesis argues that the factors influencing inflation dynamics are becoming increasingly global. The interest in the global determinants of inflation stems from the observed co-movement of inflation rates across advanced economies (AEs) amid the growing internationalisation of goods, services and financial markets. This article reviews recent inflation developments across AEs and the channels through which globalisation can feed into the more persistent component of inflation. The article finds that three elements of globalisation appear to be linked to a lower persistent inflation: trade integration, informational globalisation and global value chain participation. However, available estimates suggest that this effect is economically small, and the article concludes that globalisation does not appear to be a key determinant of the synchronisation and decline in inflation rates observed across AEs. Looking ahead a reversal (or further slowdown) of globalisation trends could provide only limited tailwinds for inflation trends.
- JEL Code
- E31 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Price Level, Inflation, Deflation
E42 : Macroeconomics and Monetary Economics→Money and Interest Rates→Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems
E50 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→General
F36 : International Economics→International Finance→Financial Aspects of Economic Integration
F40 : International Economics→Macroeconomic Aspects of International Trade and Finance→General
F60 : International Economics→Economic Impacts of Globalization→General
Interest rates
| Marginal lending facility | 0.25 % |
| Main refinancing operations (fixed rate) | 0.00 % |
| Deposit facility | − 0.50 % |
Inflation rate
Inflation dashboardReference rates
| USD | US dollar | 1.1950 | |
| JPY | Japanese yen | 132.27 | |
| GBP | Pound sterling | 0.85950 | |
| CHF | Swiss franc | 1.0956 |
Financial stability
Our tasks Institutional framework Financial Stability Review Macroprudential policy measuresMarket operations
Open market operations Asset purchase programmes Lendings of holdings under PSPPNOT AN EXPERT? CHECK EXPLAINER
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