Recording of the Panel "Democratizing the European Central Bank"
05.02.2021
With:
- Jens van ’t Klooster, KU Leuven and
- Luis Garicano, Member of European Parliament
This panel was part of the conference "Next Generation Gentral Banking - Climate Change, Inequality, Financial Instability" 03. - 05.02.2021.
In March 2020, central banks have once again proven to be the first line of defense in crisis-ridden times. With their far reaching actions they prevented the world from experiencing a collapse of financial markets on top of the severe health and economic crisis caused by Covid-19. Since the global financial crisis, central banks' roles and repertoire have vastly changed.
The Federal Reserve has recently adopted a new strategy of average inflation targeting for its monetary policy and the European Central Bank is currently conducting the first strategy review in 17 years - President Lagarde has made it very clear that the ECB intends to address this new role.
We believe that this calls for a wider debate on the role of central banks in times of financial instability, growing inequality and an escalating climate crisis. Central banks have powerful tools at their disposal. Should they - and if so, how - support policy goals beyond their traditional price stability mandate? The conference “Next Generation Central Banking: Climate change, inequality, financial instability” on 3.-5. February 2021 provided a forum on these timely questions.
