Rising household debt poses risk to the economy

The risks relating to high household indebtedness are realised when indebted households respond to the threat of payment difficulties by sharply reducing their consumption.

Caucasus and Central Asia ‒ integration or disintegration

Caucasian and Central Asian regions host ethnically and culturally diverse populations, but the countries have a long history of political and economic integration.

Expansionary economic policy boosts growth

The favourable outlook for the global economy is overshadowed by the threat of protectionism. In the euro area growth has picked up. Some of this acceleration is on a sustainable basis, but long-term growth is likely to remain slower than pre-crisis growth.

Euro countries recovered from crisis at different paces

Following the steep contraction caused by the financial crisis, there have been substantial differences in economic performance across the different countries in the euro area. Healthy economic structures appear to have facilitated a speedier recovery.

Reinvestments in ECB’s expanded asset purchase programme

The reinvestment of maturing holdings, i.e. the replacement of maturing holdings with new ones, is gradually becoming an increasingly important part of an appropriate monetary policy stance.

How has the feedback loop between banks and sovereigns changed since the crisis years?

The bank-sovereign nexus has weakened, but we cannot consider it to be broken.

Construction of a risk-based European Deposit Insurance Scheme

Single deposit insurance is an important part of the completion of Banking Union. The deposit insurance fund needs to be sufficiently large to credibly withstand possible problem situations. Banks’ deposit insurance contributions should be calibrated based on risks.

Post-crisis monetary policy modelling

In the aftermath of the global financial crisis many central banks cut their policy rates close to zero and introduced non-standard monetary policy measures. The new situation has also presented a challenge for monetary policy modelling.

Reports of the Phillips curve's death are greatly exaggerated

Euro area inflation has been slow in recent years. The way slow inflation was explained before the crisis has been challenged.

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