Debate 3: Monetary and Fiscal Interactions

Chair:
Otmar Issing (Center for Financial Studies)

Speakers:
Ignazio Visco (Banca d'Italia)
Philippe Martin (Sciences Po)
Harris Dellas (University of Bern)

Lead questions:
Elga Bartsch (BlackRock)
Sylvain Broyer (S&P Global)
Katharina Utermöhl (Allianz)

Sliders are available on our website: www.ecbwatchers.eu

In view of the sharp rise in energy prices, Ignazio Visco, Governor of the Banca d’Italia, brought temporary price controls into play. "The main response cannot come from monetary policy," he said in his opening statement of the third debate on monetary and fiscal interactions.

Philippe Martin of Sciences Po, on the other hand, recommended more targeted fiscal transfer, especially to low income households, and emphasized the need for more policy coordination in the euro area.

Harris Dellas of the University of Bern advocated a "rethinking of policy practice," arguing that monetary policy had been doing too much. "Central banks need to keep their eyes on the ball," he said, criticizing they were focusing too much on financial stability. In his opinion, central banks need to tighten up aggressively and get fit, normalizing monetary policy to prepare for the next crisis.

свернуть