The Startup
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The Startup

How should the ECB normalize monetary policy?

Synopsis: Following the 2008 financial crisis and the ensuing sovereign debt crisis, the European Central Bank (ECB) lowered its key deposit rate and engaged in large scale asset purchases. Despite the lowering interest rates into negative territory, the recovery is neither speedy, nor inflation converging towards the 2.0% target any faster than expected. The Central Bank should consider raising rates to the zero lower bound, whilst using its targeted long term refinancing operations to achieve its mandate. Its forward guidance should be used to communicate “normalization” as

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Henri Kouam

Henri Kouam

I am an economist and contributor to Nkafu policy, a think tank. I cover global economic, fiscal and monetary policy with policy and asset price implications.